Several closely watched mortgage rates tapered off in the Atlanta area this week.
Key 30-year rate declines in Atlanta
The average rate on the benchmark 30-year fixed-rate mortgage rate for the Atlanta area declined to 3.81%, according to Bankrate's national survey of large lenders. While the local rate was above the national average rate of 3.54%, it was down 11 basis points from last week. A basis point is one-hundredth of 1 percentage point.
The mortgages in this week's survey had an average of 0.46 discount and origination points.
"The drop in the 30-year fixed is cause for celebration among those who waited to lock on a rate, as their gamble paid off," says Holden Lewis, Bankrate's senior mortgage analyst.
Monthly payments on a hypothetical $165,000 mortgage fell to $769.77, dropping $10.30 from last week, corresponding with the drop in mortgage rates.
Other Atlanta mortgage types decline
Jumbo mortgages are used for loan amounts above limits set by the Federal Housing Finance Agency; for the Atlanta area, that limit is $417,000.
The average rate for 15-year fixed-rate mortgages fell 8 basis points as well, falling to 2.98%. Monthly payments on a hypothetical $165,000, 15-year fixed-rate mortgage followed rates ticking downwards, decreasing $6.33 to $1,137.87.
"The 15-year fixed is a popular mortgage for homeowners who want to refinance. With this fall in the 15-year fixed, a refinance will be more attractive to some homeowners," Lewis says.
The benchmark 5/1 adjustable-rate mortgage rate diminished 2 points this week, dipping to 3.28%. 5/1 adjustable-rate mortgages allow property owners to pay a fixed rate for the first 5 years, and the rate adjusts once per year every year after. They are the most popular variety of variable-rate mortgage.
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Weekly mortgage survey
|Results from Bankrate's survey of mortgage lenders conducted 9/28/2016. Monthly payments are for a $165,000 loan. The jumbo rate is for the minimum jumbo loan amount of $417,000 in the Atlanta area.|
|30-year fixed||15-year fixed||5-year ARM||30-year jumbo|
|This week's rate:||3.81%||2.98%||3.28%||3.50%|
|Change from last week:||-0.11||-0.08||-0.02||-0.13|
|Change from last week:||-$10.30||-$6.33||-$1.81||-$30.13|