Multiple benchmark mortgage rates increased in the Houston area this week.
Benchmark 30-year rate up in Houston
The average rate on the benchmark 30-year fixed-rate mortgage for the Houston area increased to 4.23 percent, according to Bankrate's national survey of large lenders. Not only did the local rate climb 3 basis points from last week, but it eclipsed the national average rate of 4.13 percent. A basis point is one-hundredth of 1 percentage point.
In this week's survey, the mortgages had an average of 0.57 discount and origination points.
"With the 30-year fixed rising, it means that homebuyers and refinancers will find their borrowing costs have grown," says Holden Lewis, Bankrate's senior mortgage analyst.
The rise in the mortgage rate punched up 30-year fixed-rate monthly payments on a hypothetical $165,000 mortgage to $809.77, an addition of $2.90 from last week.
No clear direction for other Houston mortgage types
On the other hand, the average rate for 30-year jumbo mortgages fell this week, down 3 basis points to 4.20 percent. Jumbo mortgages are used for loan amounts above limits set by the Federal Housing Finance Agency; for the Houston area, that limit is $417,000.
The average rate for 15-year fixed-rate mortgages rose 2 basis points, growing to 3.50 percent. Monthly payments on a hypothetical $165,000, 15-year fixed-rate mortgage followed rates upward, ticking up $1.62 to $1,179.56.
"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 remained consistent at 3.56 percent this week. The most common type of variable-rate mortgage, 5/1 ARMs allow homeowners 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 Houston area.|
|30-year fixed||15-year fixed||5-year ARM||30-year jumbo|
|This week's rate:||4.23%||3.50%||3.56%||4.20%|
|Change from last week:||+0.03||+0.02||N/C||-0.03|
|Change from last week:||+$2.90||+$1.62||N/C||-$7.29|