A number of benchmark mortgage rates trended upward in the Los Angeles area this week.
Key 30-year rate ticks up in Los Angeles
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 end up above the national average rate of 3.64%, it was up 6 basis points from last week. A basis point is one-hundredth of 1 percentage point.
In this week's survey, the mortgages had an average of 0.16 discount and origination points.
"With the 30-year fixed rising, it means that homebuyers and refinancers will find their borrowing costs have grown," says Holden Lewis, Bankrate's senior mortgage analyst.
The climb in the mortgage rate raised 30-year fixed-rate monthly payments on a hypothetical $165,000 mortgage to $761.33, an increase of $5.62 from last week.
Other Los Angeles mortgage types see increases
The rate for 30-year jumbo mortgages also ticked upward this week, increasing 4 points to 3.69%. 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 a remarkable 14 basis points as well, growing to 3.16%. Monthly payments on a hypothetical $165,000, 15-year fixed-rate mortgage ticked up along with rates, adding $11.22 to $1,152.20.
"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," Lewis says.
The benchmark 5/1 adjustable-rate mortgage rate increased to 3.27% this week, a rise of 4 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 type of variable-rate mortgage.
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Weekly mortgage survey
|Results from Bankrate's survey of mortgage lenders conducted 10/19/2016. 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:||3.72%||3.16%||3.27%||3.69%|
|Change from last week:||+0.06||+0.14||+0.04||+0.04|
|Change from last week:||+$5.62||+$11.22||+$3.63||+$14.16|