Several benchmark mortgage rates floated higher in the Detroit area this week.
Key 30-year rate higher in Detroit
The average rate on the benchmark 30-year fixed-rate mortgage rate for the Detroit area moved upward to 4.33 percent, according to Bankrate's national survey of large lenders. While it sat below the national average rate of 4.35 percent, the local rate was up 7 basis points from last week. A basis point is one-hundredth of 1 percentage point.
The mortgages in this week's survey had an average of 0.12 discount and origination points.
"With the 30-year fixed rising, it means that homebuyers and refinancers will find their borrowing costs have gone up," says Holden Lewis, Bankrate's senior mortgage analyst.
The climb in the mortgage rate lifted 30-year fixed-rate monthly payments on a hypothetical $165,000 mortgage to $819.45, an uptick of $6.81 from last week.
Other Detroit mortgage types see increases
The rate for 30-year jumbo mortgages also ticked up this week, trending up a whopping 15 basis points to 4.28 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 climbed to 3.47 percent, climbing 3 basis points from last week. Monthly payments on a hypothetical $165,000, 15-year fixed-rate mortgage moved higher with rates, ratcheting up $2.43 to $1,177.13.
"Because the 15-year fixed is a popular mortgage for homeowners who want to refinance, the increase means that a refi is less profitable than it would have been before the rate rise," says Lewis.
The benchmark 5/1 adjustable-rate mortgage rate rose to 3.42 percent this week, a rise of 7 basis points. 5/1 adjustable-rate mortgages allow property owners to pay a fixed rate for the first 5 years, and the rate adjusts once per year every year after. They are the most common type of variable-rate mortgage.
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Weekly mortgage survey
|Results from Bankrate's survey of mortgage lenders conducted 2/15/2017. 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:||4.33%||3.47%||3.42%||4.28%|
|Change from last week:||+0.07||+0.03||+0.07||+0.15|
|Change from last week:||+$6.81||+$2.43||+$6.43||+$37.48|
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."