Several important mortgage rates cruised higher in the Chicago area this week.
Key 30-year rate up in Chicago
The average rate on the benchmark 30-year fixed-rate mortgage rate for the Chicago area increased to 4.00 percent, according to Bankrate's national survey of large lenders. Not only did the local rate top the national average rate of 3.99 percent, it was up 1 basis point from last week. A basis point is one-hundredth of 1 percentage point.
In this week's survey, the mortgages had an average of 0.38 discount and origination points.
With the 30-year fixed rising, it means that homebuyers and refinancers will find their borrowing costs have gone up.
The increase in the mortgage rate elevated 30-year fixed-rate monthly payments on a hypothetical $165,000 mortgage to $787.74, an uptick of $0.95 from last week.
No clear direction for other Chicago mortgage types
On the other hand, the average rate for 30-year jumbo mortgages fell this week, sliding 1 basis point to 3.77 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 grew to 3.35 percent, up 1 basis point from last week. Monthly payments on a hypothetical $165,000, 15-year fixed-rate mortgage followed rates upward, climbing $0.81 to $1,167.44.
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.
The popular 5/1 adjustable-rate mortgage rate declined 2 points this week, down to 3.50 percent. 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 popular type of variable-rate mortgage.
Weekly mortgage survey
|Results from Bankrate's survey of mortgage lenders conducted September 13, 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:||4.00%||3.35%||3.50%||3.77%|
|Change from last week:||+0.01||+0.01||-0.02||-0.01|
|Change from last week:||+$0.95||+$0.81||-$1.84||-$2.41|
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."