A number of important mortgage rates declined in the Miami area this week.
Benchmark 30-year rate slides in Miami
According to Bankrate's national survey of large lenders, the average rate on the benchmark 30-year fixed-rate mortgage rate for the Miami area slid to 4.23 percent. The local rate sat below the national average rate of 4.29 percent, and was down 7 basis points from last week. A basis point is one-hundredth of 1 percentage point.
The mortgages in the survey for this week had an average of 0.29 discount and origination points.
"The drop in the 30-year fixed spells great news for those who waited to lock on a rate, as that turned out to be a smart bet," says Holden Lewis, Bankrate's senior mortgage analyst.
Monthly payments on a hypothetical $165,000 mortgage fell to $809.77, falling $6.74 from last week, corresponding with the dip in mortgage rates.
Other Miami mortgage types mixed
Jumbo mortgages are used for loan amounts above limits set by the Federal Housing Finance Agency; for the Miami area, that limit is $424,100.
The average rate for 15-year fixed-rate mortgages stayed put at 3.44 percent. Monthly payments on a hypothetical $165,000 15-year fixed-rate mortgage held, staying at $1,174.70.
"The 15-year fixed is a popular mortgage for homeowners who want to refinance. Rates staying put won't help or hurt for refinancers thinking about locking soon," Lewis says.
The benchmark 5/1 adjustable-rate mortgage rate dropped 9 points this week, dipping to 3.33 percent. 5/1 adjustable-rate mortgages allow property owners 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.
RATE SEARCH: Compare mortgage rates in your area now.
Weekly mortgage survey
|Results from Bankrate's survey of mortgage lenders conducted 2/22/2017. Monthly payments are for a $165,000 loan. The jumbo rate is for the minimum jumbo loan amount of $424,100 in the Miami area.|
|30-year fixed||15-year fixed||5-year ARM||30-year jumbo|
|This week's rate:||4.23%||3.44%||3.33%||4.29%|
|Change from last week:||-0.07||N/C||-0.09||-0.09|
|Change from last week:||-$6.74||N/C||-$8.17||-$22.34|
Methodology: The "Bankrate.com National Average," or "national survey of large lenders," is conducted weekly. To conduct the National Average survey, Bankrate obtains rate information from the 10 largest banks and thrifts in 10 large U.S. markets. In the Bankrate.com national survey, our Market Analysis team gathers rates and/or yields on banking deposits, loans and mortgages. We've conducted this survey in the same manner for more than 30 years, and because it's consistently done the way it is, it gives an accurate national apples-to-apples comparison.
To learn more about the different rate averages Bankrate publishes, see "Understanding Bankrate's Rate Averages."