Several important mortgage rates declined in the Detroit area this week.
Benchmark 30-year rate declines in Detroit
According to Bankrate's national survey of large lenders, the average rate on the benchmark 30-year fixed-rate mortgage for the Detroit area slid to 4.03 percent. The local rate was down 1 basis point from last week, and was less than the national average rate of 4.13 percent. A basis point is one-hundredth of 1 percentage point.
The mortgages in this week's survey averaged 0.12 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," says Holden Lewis, Bankrate's senior mortgage analyst.
Monthly payments on a hypothetical $165,000 mortgage fell to $790.59, decreasing $0.95 from last week, corresponding with the decline in mortgage rates.
Other Detroit mortgage types mixed
The average rate for 30-year jumbo mortgages went in the other direction this week, ramping up 3 basis points to 4.09 percent. 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 climbed 5 basis points as well, climbing to 3.27 percent. Monthly payments on a hypothetical $165,000, 15-year fixed-rate mortgage ticked up along with rates, scaling up $4.02 to $1,161.01.
"Because the 15-year fixed is a popular mortgage for homeowners who want to refinance, the increase means that a refi is less advantageous than it would have been before the rate rise," says Lewis.
The benchmark 5/1 adjustable-rate mortgage rate ticked downwards 3 basis points this week, dropping to 3.44 percent. The most common type of variable-rate mortgage, 5/1 ARMs allow property owners 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 11/30/2016. 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:||4.03%||3.27%||3.44%||4.09%|
|Change from last week:||-0.01||+0.05||-0.03||+0.03|
|Change from last week:||-$0.95||+$4.02||-$2.75||+$7.26|