Mortgage rates trended upward in the Chicago area this week.
Benchmark 30-year rate higher
The average rate on the benchmark 30-year fixed-rate mortgage rate for the Chicago area climbed to 3.57%, according to Bankrate's national survey of large lenders. While the local rate was up 1 basis point from last week, it was below the national average rate of 3.60%. A basis point is one-hundredth of 1 percentage point.
The mortgages in this week's survey averaged .13 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 $747.39, an increase of $0.92 from last week.
Other mortgage types mixed
The rate for 30-year jumbo mortgages also ticked upward this week, ramping up 6 points to 3.51%. Jumbo mortgages are used for loan amounts above 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 increased 3 basis points as well, growing to 2.86%. Monthly payments on a hypothetical $165,000, 15-year fixed-rate mortgage followed rates ticking downwards, decreasing $2.65 to $683.25.
"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 slid 8 basis points this week, slipping to 2.72%. The most common variety 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 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 $417,000 in Chicago.|
|30-year fixed||15-year fixed||5-year ARM||30-year jumbo|
|This week's rate:||3.57%||2.86%||2.72%||3.51%|
|Change from last week:||+0.01||+0.03||-0.08||+0.06|
|Change from last week:||+$0.93||+$2.37||-$6.96||+$14|