Multiple benchmark mortgage rates declined in the Houston area this week.
Key 30-year rate shows decline 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 declined to 4.21 percent. The local rate was down 10 basis points from last week, and was lower than the national average rate of 4.29 percent. A basis point is one-hundredth of 1 percentage point.
The average mortgage in our survey this week had 0.38 discount and origination points.
"The drop in the 30-year fixed will benefit those who waited to lock on a rate, as that turned out to be a smart bet," says Holden Lewis, Bankrate's senior mortgage analyst.
Monthly payments on a hypothetical $165,000 mortgage slid to $807.84, dropping $9.61 from last week, corresponding with the slip in mortgage rates.
Other Houston mortgage types slide
The average rate for 30-year jumbo mortgages fell this week, down 14 basis points to 4.51 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 slipped 6 basis points as well, reaching 3.54 percent. Monthly payments on a hypothetical $165,000, 15-year fixed-rate mortgage followed rates on the decline, dropping $4.86 to $1,182.80.
"The 15-year fixed is a popular mortgage for homeowners who want to refinance. With this downward trend in the 15-year fixed, a refinance will be more beneficial to some homeowners," Lewis says.
The benchmark 5/1 adjustable-rate mortgage rate slid to 3.41 percent this week, a drop of 12 basis points. 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 common type of variable-rate mortgage.
Weekly mortgage survey
|Results from Bankrate's survey of mortgage lenders conducted March 22, 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:||4.21%||3.54%||3.41%||4.51%|
|Change from last week:||-0.10||-0.06||-0.12||-0.14|
|Change from last week:||-$9.61||-$4.86||-$10.94||-$35.15|
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."