Mortgage rates climbed in the Los Angeles area this week.
Key 30-year rate rises in Los Angeles
The average rate on the benchmark 30-year fixed-rate mortgage rate for the Los Angeles area rose to 3.63%, according to Bankrate's national survey of large lenders. Not only did the local rate top the national average rate of 3.57%, it was up 2 basis points from last week. A basis point is one-hundredth of 1 percentage point.
Mortgages in this week's survey had an average of 0.21 discount and origination points.
"With the 30-year fixed rising, it means that homebuyers and refinancers will find it more expensive to borrow," says Holden Lewis, Bankrate's senior mortgage analyst.
The increase in the mortgage rate raised 30-year fixed-rate monthly payments on a hypothetical $165,000 mortgage to $752.95, an uptick of $1.86 from last week.
Other Los Angeles mortgage types mixed
Breaking ranks with the 30-year conventional mortgage, the average rate for 30-year jumbo mortgages fell this week, giving up a remarkable 18 basis points to 3.65%. Jumbo mortgages are used for loan amounts above limits set by the Federal Housing Finance Agency. Those limits can range from $417,000 to $625,500, depending on the location.
The average rate for 15-year fixed-rate mortgages climbed 4 basis points, up to 3.06%. Monthly payments on a hypothetical $165,000, 15-year fixed-rate mortgage followed rates upward, increasing $3.18 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 beneficial than it would have been before the rate rise," says Lewis.
The benchmark 5/1 adjustable-rate mortgage rate increased to 3.34% this week, a rise of a striking 17 basis points. The most common type 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.
RATE SEARCH: Compare mortgage rates in your area now.
Weekly mortgage survey
|Results from Bankrate's Aug. 24 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:||3.63%||3.06%||3.34%||3.65%|
|Change from last week:||+0.02||+0.04||+0.17||-0.18|
|Change from last week:||+$1.86||+$3.18||+$15.58||-$63.10|