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Mortgage rates in Houston

By Claes Bell · Bankrate.com
Thursday, January 19, 2017
Posted: 7 am ET

A number of key mortgage rates trended down in the Houston area this week.

Key 30-year rate shows decline in Houston

The average rate on the benchmark 30-year fixed-rate mortgage for the Houston area slid to 4.23 percent, according to Bankrate's national survey of large lenders. While the local rate topped the national average rate of 4.18 percent, it was down 2 basis points from last week. A basis point is one-hundredth of 1 percentage point.

Mortgages in this week's survey had an average of 0.39 discount and origination points.

"The drop in the 30-year fixed is cause for celebration among 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 slid to $809.77, dropping $1.93 from last week, corresponding with the decline in mortgage rates.

Other Houston mortgage types mixed

Jumbo mortgages are used for loan amounts above limits set by the Federal Housing Finance Agency; for the Houston area, that limit is $424,100.

The average rate for 15-year fixed-rate mortgages dropped 3 basis points as well, reaching 3.51 percent. Monthly payments on a hypothetical $165,000, 15-year fixed-rate mortgage followed rates trending down, dropping $2.43 to $1,180.37.

"The 15-year fixed is a popular mortgage for homeowners who want to refinance. With this decrease in the 15-year fixed, a refinance will be more profitable to some homeowners," Lewis says.

The benchmark 5/1 adjustable-rate mortgage held at 3.45 percent. 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. They are the most popular type of variable-rate mortgage.

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Weekly mortgage survey

Results from Bankrate's survey of mortgage lenders conducted 1/18/2017. Monthly payments are for a $165,000 loan. The jumbo rate is for the minimum jumbo loan amount of $424,100 in the Houston area.
30-year fixed 15-year fixed 5-year ARM 30-year jumbo
This week's rate: 4.23% 3.51% 3.45% 4.59%
Change from last week: -0.02 -0.03 N/C -0.01
Monthly payment: $809.77 $1,180.37 $736.33 $2,171.59
Change from last week: -$1.93 -$2.43 N/C -$2.53

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."

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