Mortgage rates diverged in the Los Angeles area this week.
Benchmark 30-year rate stays flat in Los Angeles
According to Bankrate's national survey of large lenders, the average rate on the benchmark 30-year fixed-rate mortgage rate for the Los Angeles area held at 3.70%. The local rate topped the national rate of 3.62%.
The mortgages in this week's survey averaged 0.21 discount and origination points.
"With the most popular mortgage rate doing a whole lot of nothing, it's neither good news nor bad news for potential borrowers who were waiting to lock a mortgage rate," says Holden Lewis, Bankrate's senior mortgage analyst.
Monthly payments on a hypothetical $165,000 30-year fixed-rate mortgage were also consistent, holding at $759.47.
Other Los Angeles mortgage types mixed
On the other hand, the average rate for 30-year jumbo mortgages trended upward this week, rising 8 basis points to 3.77%. Jumbo mortgages are used for loan amounts above limits set by the Federal Housing Finance Agency -- for the Los Angeles area, that limit is $625,500.
The average rate for 15-year fixed-rate mortgages increased to 3.19%, climbing 5 basis points from last week. Monthly payments on a hypothetical $165,000, 15-year fixed-rate mortgage ticked up along with rates, rising $4.00 to $1,154.60.
"Because the 15-year fixed is a popular mortgage for homeowners who want to refinance, the increase means that a refi is less beneficial than it would have been before the rate rise," says Lewis.
The benchmark 5/1 adjustable-rate mortgage rate ticked downwards to 3.20% this week, a drop of 3 basis points. The most common variety of variable-rate mortgage, 5/1 ARMs allow property owners to pay a fixed rate for the first 5 years, and the rate adjusts once per year every year after.
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Weekly mortgage survey
|Results from Bankrate's survey of mortgage lenders conducted 9/21/2016. Monthly payments are for a $165,000 loan. The jumbo rate is for the minimum jumbo loan amount of $625,500 in the Los Angeles area.|
|30-year fixed||15-year fixed||5-year ARM||30-year jumbo|
|This week's rate:||3.70%||3.19%||3.20%||3.77%|
|Change from last week:||N/C||+0.05%||-0.03%||+0.08%|
|Change from last week:||N/C||+$4||-$2.70||+$28.50|