Mortgage rates rose in the Los Angeles area this week.
Key 30-year rate ticks up
The average rate on the benchmark 30-year fixed-rate mortgage rate for the Los Angeles area ticked upward to 3.72%, according to Bankrate's national survey of large lenders. Not only did the local rate trend up 3 basis points from last week, but it was above the national average rate of 3.63%. A basis point is one-hundredth of 1 percentage point.
The mortgages in the survey for this week had an average of 0.19 discount and origination points.
"With the 30-year fixed rising, it means that homebuyers and refinancers will find their borrowing costs have increased," says Holden Lewis, Bankrate's senior mortgage analyst.
The rise in the mortgage rate elevated 30-year fixed-rate monthly payments on a hypothetical $165,000 mortgage to $761.33, an addition of $2.81 from last week.
Other mortgage types mixed
Breaking ranks with the 30-year conventional mortgage, the average rate for 30-year jumbo mortgages fell this week, down a substantial 19 basis points to 3.96%. Jumbo mortgages are used for loan amounts above limits set by the Federal Housing Finance Agency that can range from $417,000 to $625,000, depending on the location.
The average rate for 15-year fixed-rate mortgages rose to 3.06%, rising 9 basis points from last week. Monthly payments on a hypothetical $165,000, 15-year fixed-rate mortgage moved up with rates, increasing $7.17 to $1,144.23.
"Because the 15-year fixed is a popular mortgage for homeowners who want to refinance, the increase means that a refi is less advantageous than it would have been before the rate rise," Lewis says.
The benchmark 5/1 adjustable-rate mortgage rate 3.34% this week, a drop of 11 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 variety of variable-rate mortgage.
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Weekly mortgage survey
|Results from Bankrate's July 27 survey of mortgage lenders. Monthly payments are for a $165,000 loan. The jumbo rate is for the minimum jumbo loan amount of $625,500 in Los Angeles.|
|30-year fixed||15-year fixed||5-year ARM||30-year jumbo|
|This week's rate:||3.72%||3.06%||3.34%||3.96%|
|Change from last week:||+0.03||+0.09||-0.11||-0.19|
|Change from last week:||+$2.81||+$7.17||-$9.99||-$67.94|