Mortgage rates were higher in the Boston area this week.
Key 30-year rate ticks up
According to Bankrate's national survey of large lenders, the average rate on the benchmark 30-year fixed-rate mortgage rate for the Boston area increased to 3.59%. While the local rate was up 1 basis point from last week, it still sat below the national average rate of 3.60%. A basis point is one-hundredth of 1 percentage point.
In the survey for the current week, the mortgages had an average of .23 discount and origination points.
"With the 30-year fixed rising, it means that homebuyers and refinancers will find their borrowing costs have increased," says Holden Lewis, Bankrate's senior mortgage analyst.
The rise in the mortgage rate raised 30-year fixed-rate monthly payments on a hypothetical $165,000 mortgage to $749.23, an increase of $0.93 from last week.
Other mortgage types mixed
Breaking ranks with the 30-year conventional mortgage, the average rate for 30-year jumbo mortgages didn't move this week, remaining at 3.69%. Jumbo loans are used for mortgages that exceed limits set by the Federal Housing Finance Agency that can range from $417,000 to $625,000, depending on the location.
The average rate for 15-year fixed-rate mortgages ticked upward 4 basis points, reaching 2.78%. Monthly payments on a hypothetical $165,000, 15-year fixed-rate mortgage followed rates down, down $3.52 to $676.22.
"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," Lewis says.
The benchmark 5/1 adjustable-rate mortgage rate rose 2 basis points this week, climbing to 3.21%. 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.
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Weekly mortgage survey
|Results from Bankrate's July 20 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:||3.59%||2.78%||3.21%||3.69%|
|Change from last week:||+0.01||+0.04||+0.02||N/C|
|Change from last week:||+$0.93||+$3.15||+$1.81||N/C|