Several important mortgage rates climbed higher in the Boston area this week.
Key 30-year rate rises in Boston
According to Bankrate's national survey of large lenders, the average rate on the benchmark 30-year fixed-rate mortgage for the Boston area grew to 4.09 percent. While it still sat below the national average rate of 4.15 percent, the local rate was up 3 basis points from last week. A basis point is one-hundredth of 1 percentage point.
The mortgages in this week's survey averaged 0.19 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 $796.32, an uptick of $2.87 from last week.
No clear direction for other Boston mortgage types
The rate for 30-year jumbo mortgages also trended up this week, ramping up 4 points to 4.02 percent. Jumbo mortgages are used for loan amounts above limits set by the Federal Housing Finance Agency; for the Boston area, that limit is $523,250.
The average rate for 15-year fixed-rate mortgages climbed 2 basis points as well, growing to 3.23 percent. Monthly payments on a hypothetical $165,000, 15-year fixed-rate mortgage ticked up along with rates, climbing $1.60 to $1,157.80.
"Because the 15-year fixed is a popular mortgage for homeowners who want to refinance, the increase means that a refi is less profitable than it would have been before the rate rise," says Lewis.
The benchmark 5/1 adjustable-rate mortgage diminished 4 basis points this week, slipping to 3.35 percent. The most common variety of variable-rate mortgage, 5/1 ARMs allow property owners to pay a fixed rate for the first five years, and the rate adjusts once per year every year after.
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Weekly mortgage survey
|Results from Bankrate's survey of mortgage lenders conducted 12/7/2016. Monthly payments are for a $165,000 loan. The jumbo rate is for the minimum jumbo loan amount of $523,250 in the Boston area.|
|30-year fixed||15-year fixed||5-year ARM||30-year jumbo|
|This week's rate:||4.09%||3.23%||3.35%||4.02%|
|Change from last week:||+0.03||+0.02||-0.04||+0.04|
|Change from last week:||+$2.87||+$1.60||-$3.64||+$12.10|