Multiple benchmark mortgage rates declined in the Chicago area this week.
Key 30-year rate shows decline 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 slid to 4.23 percent. The local rate was less than the national average rate of 4.29 percent, and was down an astonishing 14 basis points from last week. A basis point is one-hundredth of 1 percentage point.
In this week's survey, the mortgages had an average of 0.36 discount and origination points.
"The drop in the 30-year fixed will benefit those who waited to lock on a rate, as their wager paid off," says Holden Lewis, Bankrate's senior mortgage analyst.
Monthly payments on a hypothetical $165,000 mortgage fell to $809.77, dipping $13.45 from last week, corresponding with the drop in mortgage rates.
Other Chicago mortgage types fall
The average rate for 30-year jumbo mortgages fell this week, down 27 basis points to 3.97 percent. Jumbo mortgages are used for loan amounts above limits set by the Federal Housing Finance Agency; for the Chicago area, that limit is $424,100.
The average rate for 15-year fixed-rate mortgages dropped 11 basis points as well, reaching 3.50 percent. Monthly payments on a hypothetical $165,000, 15-year fixed-rate mortgage followed rates ticking downwards, tapering off $8.89 to $1,179.56.
"The 15-year fixed is a popular mortgage for homeowners who want to refinance. With this decrease in the 15-year fixed, a refinance will be more attractive to some homeowners," says Lewis.
The benchmark 5/1 adjustable-rate mortgage rate declined to 3.28 percent this week, a drop of 11 basis points. 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.
Weekly mortgage survey
|Results from Bankrate's survey of mortgage lenders conducted March 22, 2017. Monthly payments are for a $165,000 loan. The jumbo rate is for the minimum jumbo loan amount of $424,100 in the Chicago area.|
|30-year fixed||15-year fixed||5-year ARM||30-year jumbo|
|This week's rate:||4.23%||3.50%||3.28%||3.97%|
|Change from last week:||-0.14||-0.11||-0.11||-0.27|
|Change from last week:||-$13.45||-$8.89||-$9.94||-$65.33|
Methodology: The "Bankrate.com National Average," or "national survey of large lenders," is conducted weekly. To conduct the National Average survey, Bankrate obtains rate information from the 10 largest banks and thrifts in 10 large U.S. markets. In the Bankrate.com national survey, our Market Analysis team gathers rates and/or yields on banking deposits, loans and mortgages. We've conducted this survey in the same manner for more than 30 years, and because it's consistently done the way it is, it gives an accurate national apples-to-apples comparison.
To learn more about the different rate averages Bankrate publishes, see "Understanding Bankrate's Rate Averages."