Mortgage rates showed no clear direction in the Detroit area this week.
Benchmark 30-year rate ticks down 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 declined to 4.12 percent. The local rate was lower than the national average rate of 4.19 percent, and was down 2 basis points from last week. A basis point is one-hundredth of 1 percentage point.
The mortgages in the survey for this week had an average of 0.09 discount and origination points.
"The drop in the 30-year fixed will benefit those who waited to lock on a rate, as their decision turned out to be a shrewd one," says Holden Lewis, Bankrate's senior mortgage analyst.
Monthly payments on a hypothetical $165,000 mortgage fell to $799.19, dropping $1.92 from last week, corresponding with the dip in mortgage rates.
Other Detroit mortgage types go higher
The average rate for 30-year jumbo mortgages went in the other direction this week, rising 6 basis points to 4.06%. 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 ticked upward 5 basis points as well, climbing to 3.40 percent. Monthly payments on a hypothetical $165,000, 15-year fixed-rate mortgage increased along with rates, adding $4.04 to $1,171.47.
"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 upward 8 points this week, up to 3.38 percent. 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.
Weekly mortgage survey
|Results from Bankrate's survey of mortgage lenders conducted April 26, 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:||4.12%||3.40%||3.38%||4.06%|
|Change from last week:||-0.02||+0.05||+0.08||+0.06|
|Change from last week:||-$1.92||+$4.04||+$7.33||+$14.75|
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."