Mortgage rates trended upward in the Detroit area this week.
Benchmark 30-year rate up
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 climbed to 3.55%. While it was still below the national average rate of 3.60%, the local rate was up 2 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 .12 discount and origination points.
"With the 30-year fixed rising, it means that homebuyers and refinancers will find it more expensive to borrow," says Holden Lewis, Bankrate's senior mortgage analyst.
The increase in the mortgage rate punched up 30-year fixed-rate monthly payments on a hypothetical $165,000 mortgage to $745.53, an uptick of $1.85 from last week.
Other mortgage types go higher
The rate for 30-year jumbo mortgages also trended upward this week, trending up 6 basis points to 3.56%. Jumbo mortgages are used for loan amounts above limits set by the Federal Housing Finance Agency that can range from $417,000 to $625,000, depending on the location.
The average rate for 15-year fixed-rate mortgages increased to 2.82%, climbing 4 basis points from last week. Monthly payments on a hypothetical $165,000, 15-year fixed-rate mortgage followed rates ticking downwards, ticking down $3.52 to $679.73.
"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," Lewis says.
The benchmark 5/1 adjustable-rate mortgage rate increased 4 points this week, rising to 3.03%. 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 popular variety of variable-rate mortgage.
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Weekly mortgage survey
|Results from Bankrate's July 20 survey of mortgage lenders. Monthly payments are for a $165,000 loan. The jumbo rate is for the minimum jumbo loan amount of $625,500 in San Francisco.|
|30-year fixed||15-year fixed||5-year ARM||30-year jumbo|
|This week's rate:||3.55%||2.82%||3.03%||3.56%|
|Change from last week:||+0.02||+0.04||+0.04||+0.06|
|Change from last week:||+$1.85||+$3.15||+$3.56||+$4.86|