A number of closely-watched mortgage rates trended upward in the Cincinnati area this week.
Benchmark 30-year rate higher in Cincinnati
The average rate on the benchmark 30-year fixed-rate mortgage rate for the Cincinnati area advanced to 4.00 percent, according to Bankrate’s national survey of large lenders. While the local rate was up 6 basis points from last week, it was still lower than the national average rate of 4.08 percent. A basis point is one-hundredth of 1 percentage point.
For mortgages in this week’s survey, there were an average of 0.50 discount and origination points.
With the 30-year fixed rising, it means that homebuyers and refinancers will find their borrowing costs have grown.
The increase in the mortgage rate punched up 30-year fixed-rate monthly payments on a hypothetical $165,000 mortgage to $787.74, a difference of $5.72 from last week.
No clear direction for other Cincinnati mortgage types
The average rate for 15-year fixed-rate mortgages increased to 3.25 percent, climbing 6 basis points from last week. Monthly payments on a hypothetical $165,000, 15-year fixed-rate mortgage moved upward with rates, increasing $4.82 to $1,159.40.
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 stood at 3.50 percent. The most common variety of variable-rate mortgage, 5/1 ARMs allow homeowners 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 December 6, 2017. Monthly payments are for a $165,000 loan. The jumbo rate is for the minimum jumbo loan amount of $ in the Cincinnati area.|
|30-year fixed||15-year fixed||5-year ARM|
|This week’s rate:||4.00%||3.25%||3.50%|
|Change from last week:||+0.06||+0.06||N/C|
|Change from last week:||+$5.72||+$4.82||N/C|
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.”