Mortgage rates plummeted this week in Houston. Meanwhile, the city ranked fifth on a list of the most luxury home listings and sales in the nation, the Houston Business Journal reported.
A report released by Coldwell Banker LLC looked at luxury home buying markets and trends in the nation to compile a list of the top markets. Houston landed fifth on the list behind San Francisco, Los Angeles, New York City and San Jose.
The benchmark 30-year fixed-rate mortgage in Houston slumped to 3.9 percent from 4.13 percent, according to the Bankrate.com national survey of large lenders. The mortgages in this week's survey had an average of 0.58 discount and origination points. Nationally, the 30-year fixed-rate mortgage was 4.01 percent.
As of August, Houston had sold 981 homes for $1 million or higher. The city ranked 11th for the number of active listings of homes priced $1 million or higher, with only 501 homes fitting that criteria available in August. The report continued that these relatively few listings of luxury homes drive up the demand.
But the luxury market is growing as the city continues its energy boom. Between January and October of 2013, luxury home sales increased by almost 50 percent, the Texas Association of Realtors reported. The association further noted that this increase placed Houston as the second highest among the state’s four major cities.
The benchmark 30-year jumbo mortgage, for loans of $417,000 and more, tumbled to 4.06 percent from 4.25 percent. The benchmark 15-year fixed-rate mortgage sunk to 3.13 percent from 3.38 percent. The benchmark 5/1 adjustable-rate mortgage dropped to 2.95 percent from 3.3 percent.
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Weekly mortgage survey
|Results from Bankrate's Oct. 15 survey of mortgage lenders. Monthly payments are for a $165,000 loan. The jumbo rate is for the minimum jumbo loan amount of $417,000 in Houston.|
|30-year fixed||15-year fixed||5-year ARM||30-year jumbo|
|This week's rate:||3.90%||3.13%||2.95%||4.06%|
|Change from last week:||-0.23||-0.25||-0.35||-0.19|
|Change from last week:||-$21.58||-$19.84||-$30.64||-$45.58|