Mortgage rates showed no clear direction in the Chicago area this week.
Key 30-year rate higher in Chicago
According to Bankrate's national survey of large lenders, the average rate on the benchmark 30-year fixed-rate mortgage for the Chicago area increased to 4.14 percent. While it was lower than the national average rate of 4.15 percent, the local rate was up 1 basis point from last week. A basis point is one-hundredth of 1 percentage point.
The mortgages in the survey for this week had an average of 0.19 discount and origination points.
"With the 30-year fixed rising, it means that homebuyers and refinancers will find their borrowing costs have gone up," 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 $801.11, a difference of $0.96 from last week.
Other Chicago mortgage types mixed
The rate for 30-year jumbo mortgages also ticked up this week, increasing 10 points to 4.07 percent. 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 downwards 2 basis points, reaching 3.42 percent. Monthly payments on a hypothetical $165,000, 15-year fixed-rate mortgage followed rates on the decline, dropping $1.61 to $1,173.08.
"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 tempting to some homeowners," says Lewis.
The benchmark 5/1 adjustable-rate mortgage declined to 3.16 percent this week, a drop of 12 basis points. 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 $417,000 in the Chicago area.|
|30-year fixed||15-year fixed||5-year ARM||30-year jumbo|
|This week's rate:||4.14%||3.42%||3.16%||4.07%|
|Change from last week:||+0.01||-0.02||-0.12||+0.10|
|Change from last week:||+$0.96||-$1.61||-$10.75||+$24.22|