Several closely-watched mortgage rates declined in the Detroit area this week.
Key 30-year rate declines in Detroit
The average rate on the benchmark 30-year fixed-rate mortgage rate for the Detroit area moved downward to 3.96 percent, according to Bankrate’s national survey of large lenders. The local rate was lower than the national average rate of 4.04 percent, and was down 7 basis points from last week. A basis point is one-hundredth of 1 percentage point.
The mortgages in this week’s survey averaged 0.31 discount and origination points.
The drop in the 30-year fixed will benefit those who waited to lock on a rate, as their gamble paid off.
Monthly payments on a hypothetical $165,000 mortgage slid to $783.94, dropping $6.63 from last week, corresponding with the dip in mortgage rates.
Other Detroit mortgage types mixed
The average rate for 30-year jumbo mortgages fell this week, down 3 basis points to 4.00 percent. Jumbo mortgages are used for loan amounts above limits set by the Federal Housing Finance Agency; for the Detroit area, that limit is $424,100.
The average rate for 15-year fixed-rate mortgages fell 3 basis points as well, down to 3.27 percent. Monthly payments on a hypothetical $165,000, 15-year fixed-rate mortgage followed rates down, falling $2.41 to $1,161.01.
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 advantageous to some homeowners.
The popular 5/1 adjustable-rate mortgage rate rose 8 basis points this week, increasing to 3.43 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 October 18, 2017. Monthly payments are for a $165,000 loan. The jumbo rate is for the minimum jumbo loan amount of $424,100 in the Detroit area.|
|30-year fixed||15-year fixed||5-year ARM||30-year jumbo|
|This week’s rate:||3.96%||3.27%||3.43%||4.00%|
|Change from last week:||-0.07||-0.03||+0.08||-0.03|
|Change from last week:||-$6.63||-$2.41||+$7.35||-$7.33|
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.”