Several benchmark mortgage rates were down in the Houston area this week.
Benchmark 30-year rate ticks down 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 3.60%. While the local rate was higher than the national average rate of 3.54%, it was down 10 basis points from last week. A basis point is one-hundredth of 1 percentage point.
This week, the mortgages averaged 0.59 discount and origination points.
"The drop in the 30-year fixed is great news for 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 fell to $750.16, dipping $9.24 from last week, corresponding with the decline in mortgage rates.
Other Houston mortgage types decline
Jumbo mortgages are used for loan amounts above limits set by the Federal Housing Finance Agency; for the Houston area, that limit is $417,000.
The average rate for 15-year fixed-rate mortgages declined to 2.85%, dropping 10 basis points from last week. Monthly payments on a hypothetical $165,000, 15-year fixed-rate mortgage followed rates down, down $7.87 to $1,127.59.
"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 profitable to some homeowners," Lewis says.
The benchmark 5/1 adjustable-rate mortgage rate slid to 3.05% this week, a drop of 13 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 popular variety of variable-rate mortgage.
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Weekly mortgage survey
|Results from Bankrate's survey of mortgage lenders conducted 9/28/2016. Monthly payments are for a $165,000 loan. The jumbo rate is for the minimum jumbo loan amount of $417,000 in the Houston area.|
|30-year fixed||15-year fixed||5-year ARM||30-year jumbo|
|This week's rate:||3.60%||2.85%||3.05%||3.60%|
|Change from last week:||-0.10||-0.10||-0.13||-0.08|
|Change from last week:||-$9.24||-$7.87||-$11.56||-$18.70|