Mortgage rates diverged in the Houston area this week.

Key 30-year rate falls 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 diminished to 4.07 percent. While the local rate was down 2 basis points from last week, it was still more than the national average rate of 4.04 percent. A basis point is one-hundredth of 1 percentage point.

The mortgages in the survey for the current week had an average of 0.31 discount and origination points.

The drop in the 30-year fixed is good news for those who waited to lock on a rate, as their decision turned out to be a shrewd one.

Monthly payments on a hypothetical $165,000 mortgage fell to $794.41, dipping $1.91 from last week, corresponding with the dip in mortgage rates.

Other Houston mortgage types mixed

The average rate for 30-year jumbo mortgages fell this week, down 3 basis points to 4.33 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 increased to 3.39 percent, growing 3 basis points from last week. Monthly payments on a hypothetical $165,000, 15-year fixed-rate mortgage moved up with rates, rising $2.42 to $1,170.66.

Because the 15-year fixed is a popular mortgage for homeowners who want to refinance, the increase means that a refi is less lucrative than it would have been before the rate rise.

The popular 5/1 adjustable-rate mortgage rate ticked upward to 3.55 percent this week, a rise of 4 basis points. The most common variety of variable-rate mortgage, 5/1 ARMs allow homeowners to pay a fixed rate for the first 5 years, and the rate adjusts once per year every year after.

Compare mortgage rates in your area now.

Weekly mortgage survey

Results from Bankrate’s survey of mortgage lenders conducted October 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: 4.07% 3.39% 3.55% 4.33%
Change from last week: -0.02 +0.03 +0.04 -0.03
Monthly payment: $794.41 $1,170.66 $745.54 $2,106.23
Change from last week: -$1.91 +$2.42 +$3.70 -$7.48

Methodology: The “ 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 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.”