Mortgage rates tapered off in the Houston area this week.
Key 30-year rate declines
The average rate on the benchmark 30-year fixed-rate mortgage rate for the Houston area fell to 3.63%, according to Bankrate's national survey of large lenders. While the local rate topped the national average rate of 3.60%, it was down -2 basis points from last week. A basis point is one-hundredth of 1 percentage point.
This week, the mortgages averaged .69 discount and origination points.
"The drop in the 30-year fixed will benefit those who waited to lock on a rate, as their decision paid off," says Holden Lewis, Bankrate's senior mortgage analyst.
Monthly payments on a hypothetical $165,000 mortgage slid to $752.95, falling $1.86 from last week, corresponding with the slip in mortgage rates.
Other mortgage types mixed
On the other hand, the average rate for 30-year jumbo mortgages trended upward this week, up 10 basis points to 3.73%. Jumbo loans are used for mortgages that exceed limits set by the Federal Housing Finance Agency that can range from $417,000 all the way up to $625,000, depending on the location.
The average rate for 15-year fixed-rate mortgages stayed constant at 2.90%. Monthly payments on a hypothetical $165,000 15-year fixed-rate mortgage held, staying consistent at $686.77.
"The 15-year fixed is a popular mortgage for homeowners who want to refinance. Rates staying put is neither good news nor bad news for refinancers thinking about locking soon," Lewis says.
The benchmark 5/1 adjustable-rate mortgage rate 5/1 adjustable-rate mortgages allow property owners 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 variety of variable-rate mortgage.
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Weekly mortgage survey
|Results from Bankrate's July 20 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:||3.63%||2.90%||3.08%||3.73%|
|Change from last week:||-0.02||N/C||-0.02||+0.1|
|Change from last week:||-$1.86||N/C||-$1.79||+$23.71|