Multiple important mortgage rates were down in the Chicago area this week.

Key 30-year rate ticks down 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 fell to 4.07 percent. While the local rate topped the national average rate of 4.04 percent, it was down 3 basis points from last week. A basis point is one-hundredth of 1 percentage point.

This week, the mortgages averaged 0.27 discount and origination points.

The drop in the 30-year fixed is cause for celebration among those who waited to lock on a rate, as their gamble paid off.

Monthly payments on a hypothetical $165,000 mortgage fell to $794.41, decreasing $2.86 from last week, corresponding with the decline in mortgage rates.

No clear direction for other Chicago mortgage types

The average rate for 30-year jumbo mortgages went in the other direction this week, ticking up 1 basis point to 3.90%. 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 ticked downwards 1 basis point, dipping to 3.38 percent. Monthly payments on a hypothetical $165,000, 15-year fixed-rate mortgage followed rates lower, dropping $0.81 to $1,169.86.

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 tempting to some homeowners.

The popular 5/1 adjustable-rate mortgage rate increased to 3.64 percent this week, a rise 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 common type of variable-rate mortgage.

Compare mortgage rates in your area now.

Weekly mortgage survey

Results from Bankrate’s survey of mortgage lenders conducted October 18, 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: 4.07% 3.38% 3.64% 3.90%
Change from last week: -0.03 -0.01 +0.01 +0.01
Monthly payment: $794.41 $1,169.86 $753.88 $2,000.34
Change from last week: -$2.86 -$0.81 +$0.93 +$2.43

Methodology: The “ 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 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.”