Several closely-watched mortgage rates dropped in the Chicago area this week.
Key 30-year rate falls in Chicago
The average rate on the benchmark 30-year fixed-rate mortgage rate for the Chicago area fell to 4.03 percent, according to Bankrate's national survey of large lenders. The local rate was down 11 basis points from last week, and was less than the national average rate of 4.16 percent. A basis point is one-hundredth of 1 percentage point.
The mortgages in this week's survey averaged 0.41 discount and origination points.
"The drop in the 30-year fixed will benefit those who waited to lock on a rate, as their gamble paid off," says Holden Lewis, Bankrate's senior mortgage analyst.
Monthly payments on a hypothetical $165,000 mortgage fell to $790.59, dipping $10.45 from last week, corresponding with the slip in mortgage rates.
Other Chicago mortgage types slide
The average rate for 30-year jumbo mortgages fell this week, down 10 basis points to 3.79 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 ticked downwards to 3.30 percent, dropping a hefty 17 basis points from last week. Monthly payments on a hypothetical $165,000, 15-year fixed-rate mortgage followed rates on the decline, falling $13.61 to $1,163.42.
"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," says Lewis.
The benchmark 5/1 adjustable-rate mortgage rate fell 8 basis points this week, down to 3.22 percent. 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 April 19, 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:||4.03%||3.30%||3.22%||3.79%|
|Change from last week:||-0.11||-0.17||-0.08||-0.10|
|Change from last week:||-$10.45||-$13.61||-$7.21||-$24.05|
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."