Multiple closely-watched mortgage rates trended down in the Detroit area this week.
Key 30-year rate slides in Detroit
According to Bankrate's national survey of large lenders, the average rate on the benchmark 30-year fixed-rate mortgage rate for the Detroit area dropped to 3.57%. The local rate was down 3 basis points from last week, and was below the national average rate of 3.62%. A basis point is one-hundredth of 1 percentage point.
For mortgages in this week's survey, there were an average of 0.09 discount and origination points.
"The drop in the 30-year fixed spells good news for those who waited to lock on a rate, as that turned out to be a smart bet," says Holden Lewis, Bankrate's senior mortgage analyst.
Monthly payments on a hypothetical $165,000 mortgage fell to $747.39, down $2.77 from last week, corresponding with the slip in mortgage rates.
Other Detroit mortgage types mixed
Jumbo mortgages are used for loan amounts above limits set by the Federal Housing Finance Agency -- for the Detroit area, that limit is $417,000.
The average rate for 15-year fixed-rate mortgages stayed steady, at 2.83%. Monthly payments on a hypothetical $165,000 15-year fixed-rate mortgage held, staying consistent at $1,126.02.
"The 15-year fixed is a popular mortgage for homeowners who want to refinance. Rates remaining the same doesn't mean much either way for refinancers thinking about locking soon," Lewis says.
The benchmark 5/1 adjustable-rate mortgage rate dropped 5 basis points this week, decreasing to 3.07%. 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.
RATE SEARCH: Compare mortgage rates in your area now.
Weekly mortgage survey
|Results from Bankrate's survey of mortgage lenders conducted 9/21/2016. Monthly payments are for a $165,000 loan. The jumbo rate is for the minimum jumbo loan amount of $417,000 in the Detroit area.|
|30-year fixed||15-year fixed||5-year ARM||30-year jumbo|
|This week's rate:||3.57%||2.83%||3.07%||3.53%|
|Change from last week:||-0.03%||N/C||-0.05%||-0.06%|
|Change from last week:||-$2.77||N/C||-$4.46||-$13.97|