Multiple key mortgage rates were higher in the Chicago area this week.
Benchmark 30-year rate ticks up in Chicago
According to Bankrate's national survey of large lenders, the average rate on the benchmark 30-year fixed-rate mortgage rate for the Chicago area increased to 3.60%. While the local rate was up 2 basis points from last week, it was still less than the national average rate of 3.62%. A basis point is one-hundredth of 1 percentage point.
In this week's survey, the mortgages had an average of 0.09 discount and origination points.
"With the 30-year fixed rising, it means that homebuyers and refinancers will find it pricier to borrow," 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 $750.16, a difference of $1.86 from last week.
Other Chicago mortgage types mixed
The rate for 30-year jumbo mortgages also trended upward this week, increasing 2 points to 3.49%. Jumbo mortgages are used for loan amounts above limits set by the Federal Housing Finance Agency -- for the Chicago area, that limit is $417,000.
The average rate for 15-year fixed-rate mortgages ticked upward to 2.92%, climbing 4 basis points from last week. Monthly payments on a hypothetical $165,000, 15-year fixed-rate mortgage followed rates upward, scaling up $3.17 to $1,133.12.
"Because the 15-year fixed is a popular mortgage for homeowners who want to refinance, the increase means that a refi is less advantageous than it would have been before the rate rise," says Lewis.
The benchmark 5/1 adjustable-rate mortgage rate went down to 2.83% this week, a drop of 1 basis point. 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 type of variable-rate mortgage.
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Weekly mortgage survey
|Results from Bankrate's survey of mortgage lenders conducted 9/21/2016. Monthly payments are for a $165,000 loan. The jumbo rate is for the minimum jumbo loan amount of $417,000 in the Chicago area.|
|30-year fixed||15-year fixed||5-year ARM||30-year jumbo|
|This week's rate:||3.60%||2.92%||2.83%||3.49%|
|Change from last week:||+0.02%||+0.04%||-0.01%||+0.02%|
|Change from last week:||+$1.86||+$3.17||-$0.88||+$4.66|