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Mortgage rates in Houston

By Claes Bell · Bankrate.com
Thursday, February 16, 2017
Posted: 9 am ET

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

Key 30-year rate ticks up in Houston

According to Bankrate's national survey of large lenders, the average rate on the benchmark 30-year fixed-rate mortgage rate for the Houston area rose to 4.26 percent. While the local rate was up 3 basis points from last week, it sat below the national average rate of 4.35 percent. A basis point is one-hundredth of 1 percentage point.

The mortgages in this week's survey averaged 0.39 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 increase in the mortgage rate punched up 30-year fixed-rate monthly payments on a hypothetical $165,000 mortgage to $812.67, a difference 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, sliding 1 basis point to 4.60 percent. 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 declined 1 basis point as well, reaching 3.50 percent. Monthly payments on a hypothetical $165,000, 15-year fixed-rate mortgage followed rates on the decline, down $0.81 to $1,179.56.

"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 attractive to some homeowners," Lewis says.

The benchmark 5/1 adjustable-rate mortgage rate ticked upward 5 points this week, ticking upto 3.50 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 popular variety of variable-rate mortgage.

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Weekly mortgage survey

Results from Bankrate's survey of mortgage lenders conducted 2/15/2017. 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: 4.26% 3.50% 3.50% 4.60%
Change from last week: +0.03 -0.01 +0.05 -0.01
Monthly payment: $812.67 $1,179.56 $740.92 $2,174.12
Change from last week: +$2.90 -$0.81 +$4.61 -$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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