Mortgage rates increased in the Boston area this week.
Benchmark 30-year rate ticks up in Boston
The average rate on the benchmark 30-year fixed-rate mortgage rate for the Boston area rose to 3.54%, according to Bankrate's national survey of large lenders. While it was less than the national average rate of 3.57%, the local rate was up 4 basis points from last week. A basis point is one-hundredth of 1 percentage point.
For mortgages in this week's survey, there were an average of 0.23 discount and origination points.
"With the 30-year fixed rising, it means that homebuyers and refinancers will find it more costly to borrow," says Holden Lewis, Bankrate's senior mortgage analyst.
The growth in the mortgage rate punched up 30-year fixed-rate monthly payments on a hypothetical $165,000 mortgage to $744.61, an increase of $3.70 from last week.
Other Boston mortgage types mixed
Breaking ranks with the 30-year conventional mortgage, the average rate for 30-year jumbo mortgages fell this week, rolling down 2 basis points to 3.59%. Jumbo loans are used for mortgages that exceed limits set by the Federal Housing Finance Agency. Those limits can vary anywhere from $417,000 all the way up to $625,500, depending on the location.
The average rate for 15-year fixed-rate mortgages grew 5 basis points, rising to 2.73%. Monthly payments on a hypothetical $165,000, 15-year fixed-rate mortgage moved up with rates, ratcheting up $3.93 to $1,118.16.
"Because the 15-year fixed is a popular mortgage for homeowners who want to refinance, the increase means that a refi is less beneficial than it would have been before the rate rise," says Lewis.
The benchmark 5/1 adjustable-rate mortgage rate stood at 3.03% this week. The most common type of variable-rate mortgage, 5/1 ARMs allow property owners to pay a fixed rate for the first 5 years, and the rate adjusts once per year every year after.
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Weekly mortgage survey
|Results from Bankrate's Aug. 24 survey of mortgage lenders. Monthly payments are for a $165,000 loan. The jumbo rate is for the minimum jumbo loan amount of $465,750 in Boston.|
|30-year fixed||15-year fixed||5-year ARM||30-year jumbo|
|This week's rate:||3.54%||2.73%||3.03%||3.59%|
|Change from last week:||+0.04||+0.05||N/C||-0.02|
|Change from last week:||+$3.70||+$3.93||N/C||-$5.23|