A number of benchmark mortgage rates saw an increase in the Atlanta area this week.
Key 30-year rate rises in Atlanta
The average rate on the benchmark 30-year fixed-rate mortgage rate for the Atlanta area increased to 4.33 percent, according to Bankrate's national survey of large lenders. Not only did the local rate ascend 4 basis points from last week, but it was higher than the national average rate of 4.13 percent. A basis point is one-hundredth of 1 percentage point.
In this week's survey, the mortgages had an average of 0.47 discount and origination points.
"With the 30-year fixed rising, it means that homebuyers and refinancers will find their borrowing costs have grown," says Holden Lewis, Bankrate's senior mortgage analyst.
The increase in the mortgage rate raised 30-year fixed-rate monthly payments on a hypothetical $165,000 mortgage to $819.45, an increase of $3.89 from last week.
No clear direction for other Atlanta mortgage types
Conversely, the average rate for 30-year jumbo mortgages fell this week, declining 13 basis points to 4.06 percent. Jumbo mortgages are used for loan amounts above limits set by the Federal Housing Finance Agency; for the Atlanta area, that limit is $424,100.
The average rate for 15-year fixed-rate mortgages dropped to 3.38 percent, dropping 6 basis points from last week. Monthly payments on a hypothetical $165,000, 15-year fixed-rate mortgage followed rates ticking downwards, falling $4.83 to $1,169.86.
"The 15-year fixed is a popular mortgage for homeowners who want to refinance. With this downward trend in the 15-year fixed, a refinance will be more profitable to some homeowners," Lewis says.
The benchmark 5/1 adjustable-rate mortgage rate ticked upward 10 basis points this week, ratcheting up to 3.86 percent. The most common variety of variable-rate mortgage, 5/1 ARMs allow homeowners to pay a fixed rate for the first 5 years, and the rate adjusts once per year every year after.
Weekly mortgage survey
|Results from Bankrate's survey of mortgage lenders conducted May 24, 2017. Monthly payments are for a $165,000 loan. The jumbo rate is for the minimum jumbo loan amount of $424,100 in the Atlanta area.|
|30-year fixed||15-year fixed||5-year ARM||30-year jumbo|
|This week's rate:||4.33%||3.38%||3.86%||4.06%|
|Change from last week:||+0.04||-0.06||+0.10||-0.13|
|Change from last week:||+$3.89||-$4.83||+$9.46||-$31.77|
Methodology: The "Bankrate.com National Average," or "national survey of large lenders," is conducted weekly. To conduct the National Average survey, Bankrate obtains rate information from the 10 largest banks and thrifts in 10 large U.S. markets. In the Bankrate.com national survey, our Market Analysis team gathers rates and/or yields on banking deposits, loans and mortgages. We've conducted this survey in the same manner for more than 30 years, and because it's consistently done the way it is, it gives an accurate national apples-to-apples comparison.
To learn more about the different rate averages Bankrate publishes, see "Understanding Bankrate's Rate Averages."