Multiple closely-watched mortgage rates receded in the Detroit area this week.
Key 30-year rate slides 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 slid to 4.25 percent. The local rate was lower than the national average rate of 4.29 percent, and was down a substantial 17 basis points from last week. A basis point is one-hundredth of 1 percentage point.
In this week's survey, the mortgages had an average of 0.10 discount and origination points.
"The drop in the 30-year fixed is good news for those who waited to lock on a rate, as their wager paid off," says Holden Lewis, Bankrate's senior mortgage analyst.
Monthly payments on a hypothetical $165,000 mortgage fell to $811.70, slipping $16.34 from last week, corresponding with the decline in mortgage rates.
Other Detroit mortgage types slide
The average rate for 30-year jumbo mortgages fell this week, down 41 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 $424,100.
The average rate for 15-year fixed-rate mortgages dropped an impressive 14 basis points as well, reaching 3.46 percent. Monthly payments on a hypothetical $165,000, 15-year fixed-rate mortgage followed rates lower, down $11.29 to $1,176.32.
"The 15-year fixed is a popular mortgage for homeowners who want to refinance. With this fall in the 15-year fixed, a refinance will be more tempting to some homeowners," says Lewis.
The benchmark 5/1 adjustable-rate mortgage rate dropped to 3.29 percent this week, a drop of a striking 20 basis points. 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 variety of variable-rate mortgage.
Weekly mortgage survey
|Results from Bankrate's survey of mortgage lenders conducted March 22, 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:||4.25%||3.46%||3.29%||4.09%|
|Change from last week:||-0.17||-0.14||-0.20||-0.41|
|Change from last week:||-$16.34||-$11.29||-$18.04||-$99.52|
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."