A number of closely watched mortgage rates decreased in the Dallas area this week.
Key 30-year rate shows decline in Dallas
According to Bankrate's national survey of large lenders, the average rate on the benchmark 30-year fixed-rate mortgage for the Dallas area declined to 4.19 percent. While the local rate exceeded the national average rate of 4.15 percent, it was down 1 basis point from last week. A basis point is one-hundredth of 1 percentage point.
For mortgages in this week's survey, there were an average of 0.47 discount and origination points.
"The drop in the 30-year fixed is great news for those who waited to lock on a rate, as their wager paid off," says Holden Lewis, Bankrate's senior mortgage analyst.
Monthly payments on a hypothetical $165,000 mortgage fell to $805.92, falling $0.96 from last week, corresponding with the dip in mortgage rates.
Other Dallas mortgage types mixed
Conversely, the average rate for 30-year jumbo mortgages, used for financing of $625,500 or higher, was flat this week, remaining at 4.25 percent. Jumbo mortgages are used for loan amounts above limits set by the Federal Housing Finance Agency; for the Dallas area, that limit is $417,000.
The average rate for 15-year fixed-rate mortgages ticked downwards 2 basis points, reaching 3.45 percent. Monthly payments on a hypothetical $165,000, 15-year fixed-rate mortgage followed rates ticking downwards, decreasing $1.62 to $1,175.51.
"The 15-year fixed is a popular mortgage for homeowners who want to refinance. With this downward trend in the 15-year fixed, a refinance will be more beneficial to some homeowners," says Lewis.
The benchmark 5/1 adjustable-rate mortgage declined 5 basis points this week, dropping to 3.33 percent. The most common type of variable-rate mortgage, 5/1 ARMs allow homeowners to pay a fixed rate for the first five years, and the rate adjusts once per year every year after.
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Weekly mortgage survey
|Results from Bankrate's survey of mortgage lenders conducted 12/7/2016. Monthly payments are for a $165,000 loan. The jumbo rate is for the minimum jumbo loan amount of $417,000 in the Dallas area.|
|30-year fixed||15-year fixed||5-year ARM||30-year jumbo|
|This week's rate:||4.19%||3.45%||3.33%||4.25%|
|Change from last week:||-0.01||-0.02||-0.05||N/C|
|Change from last week:||-$0.96||-$1.62||-$4.55||N/C|