Multiple benchmark mortgage rates receded in the Cleveland area this week.

Benchmark 30-year rate ticks down in Cleveland

According to Bankrate’s national survey of large lenders, the average rate on the benchmark 30-year fixed-rate mortgage rate for the Cleveland area dropped to 3.88 percent. The local rate was below the national average rate of 4.08 percent, and was down 2 basis points from last week. A basis point is one-hundredth of 1 percentage point.

The average mortgage in our survey this week had 0.56 discount and origination points.

The drop in the 30-year fixed is good news for those who waited to lock on a rate, as that turned out to be a smart bet.

Monthly payments on a hypothetical $165,000 mortgage slid to $776.36, slipping $1.89 from last week, corresponding with the decline in mortgage rates.

Other Cleveland mortgage types mixed

On the other hand, the average rate for 30-year jumbo mortgages trended up this week, increasing 3 basis points to 3.84 percent. Jumbo mortgages are used for loan amounts above limits set by the Federal Housing Finance Agency; for the Cleveland area, that limit is $424,100.

The average rate for 15-year fixed-rate mortgages declined 3 basis points, reaching 3.25 percent. Monthly payments on a hypothetical $165,000, 15-year fixed-rate mortgage followed rates on the decline, decreasing $2.40 to $1,159.40.

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 beneficial to some homeowners.

The popular 5/1 adjustable-rate mortgage rate rose 6 points this week, up to 3.22 percent. 5/1 adjustable-rate mortgages allow homeowners 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 variety of variable-rate mortgage.

Compare mortgage rates in your area now.

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 $424,100 in the Cleveland area.
30-year fixed 15-year fixed 5-year ARM 30-year jumbo
This week’s rate: 3.88% 3.25% 3.22% 3.84%
Change from last week: -0.02 -0.03 +0.06 +0.03
Monthly payment: $776.36 $1,159.40 $715.38 $1,985.79
Change from last week: -$1.89 -$2.40 +$5.43 +$7.27

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.”