Mortgage rates advanced in the Chicago area this week.
Key 30-year rate higher in Chicago
The average rate on the benchmark 30-year fixed-rate mortgage rate for the Chicago area ticked upward to 3.54%, according to Bankrate's national survey of large lenders. While the local rate was up 3 basis points from last week, it was still less than the national average rate of 3.57%. A basis point is one-hundredth of 1 percentage point.
The mortgages in this week's survey had an average of 0.23 discount and origination points.
"With the 30-year fixed rising, it means that homebuyers and refinancers will find it more costly to borrow," 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 $744.61, an addition of $2.77 from last week.
Other Chicago mortgage types rise
The rate for 30-year jumbo mortgages also ticked up this week, trending up 4 basis points to 3.47%. Jumbo mortgages are used for loan amounts above limits set by the Federal Housing Finance Agency. Those limits can range from $417,000 to $625,500, depending on the location.
The average rate for 15-year fixed-rate mortgages rose to 2.87%, growing 2 basis points from last week. Monthly payments on a hypothetical $165,000, 15-year fixed-rate mortgage followed rates upward, climbing $1.58 to $1,129.17.
"Because the 15-year fixed is a popular mortgage for homeowners who want to refinance, the increase means that a refi is less beneficial than it would have been before the rate rise," says Lewis.
The benchmark 5/1 adjustable-rate mortgage rate ticked upward 6 basis points this week, ratcheting up to 2.73%. 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 Aug. 24 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:||3.54%||2.87%||2.73%||3.47%|
|Change from last week:||+0.03||+0.02||+0.06||+0.04|
|Change from last week:||+$2.77||+$1.58||+$5.25||+$9.30|