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Mortgage rates in Detroit, Michigan

By Claes Bell · Bankrate.com
Wednesday, August 24, 2016
Posted: 6 pm ET

Mortgage rates held firm in the Detroit area this week.

Benchmark 30-year rate stays flat 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 held at 3.54%.

In the survey for the current week, the mortgages had an average of 0.12 discount and origination points.

"With the most popular mortgage rate doing a whole lot of nothing, it's neither good news nor bad news for potential borrowers who were waiting to lock a mortgage rate," says Holden Lewis, Bankrate's senior mortgage analyst.

Monthly payments on a hypothetical $165,000 30-year fixed-rate mortgage were also steady, staying at $744.61.

Other Detroit mortgage types mixed

The average rate for 30-year jumbo mortgages also remained unchanged this week at 3.56%. Jumbo mortgages are used for loan amounts above limits set by the Federal Housing Finance Agency. Those limits start at $417,000 and can range up to $625,500, depending on the location.

The average rate for 15-year fixed-rate mortgages climbed 2 basis points, growing to 2.81%. Monthly payments on a hypothetical $165,000, 15-year fixed-rate mortgage ticked up along with rates, ratcheting up $1.57 to $1,124.44.

"Because the 15-year fixed is a popular mortgage for homeowners who want to refinance, the increase means that a refi is less beneficial than it would have been before the rate rise," Lewis says.

The benchmark 5/1 adjustable-rate mortgage rate went down to 3.08% this week, a drop of 1 basis point. 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 common type of variable-rate mortgage.

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Weekly mortgage survey

Results from Bankrate's Aug. 24 survey of mortgage lenders. Monthly payments are for a $165,000 loan. The jumbo rate is for the minimum jumbo loan amount of $417,000 in Detroit.
30-year fixed 15-year fixed 5-year ARM 30-year jumbo
This week's rate: 3.54% 2.81% 3.08% 3.56%
Change from last week: N/C +0.02 -0.01 N/C
Monthly payment: $744.61 $1,124.44 $702.79 $1,184.42
Change from last week: N/C +$1.57 -$0.89 N/C
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