Multiple important mortgage rates were down in the Miami area this week.
Benchmark 30-year rate shows decline in Miami
The average rate on the benchmark 30-year fixed-rate mortgage for the Miami area dropped to 4.20 percent, according to Bankrate's national survey of large lenders. Down 9 basis points from last week, the local rate matched the national average rate. A basis point is one-hundredth of 1 percentage point.
This week, the mortgages averaged 0.23 discount and origination points.
"The drop in the 30-year fixed spells good news for those who waited to lock on a rate, as their wager paid off," says Holden Lewis, Bankrate's senior mortgage analyst.
Monthly payments on a hypothetical $165,000 mortgage fell to $806.88, dropping $8.64 from last week, corresponding with the drop in mortgage rates.
Other Miami mortgage types decline
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 slid 8 basis points as well, reaching 3.39 percent. Monthly payments on a hypothetical $165,000, 15-year fixed-rate mortgage followed rates down, dipping $6.44 to $1,170.66.
"The 15-year fixed is a popular mortgage for homeowners who want to refinance. With this decrease in the 15-year fixed, a refinance will be more profitable to some homeowners," Lewis says.
The benchmark 5/1 adjustable-rate mortgage rate slid to 3.42 percent this week, a drop of 12 basis points. The most common variety of variable-rate mortgage, 5/1 ARMs allow homeowners to pay a fixed rate for the first five 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 1/11/2017. 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:||4.20%||3.39%||3.42%||4.19%|
|Change from last week:||-0.09||-0.08||-0.12||-0.19|
|Change from last week:||-$8.64||-$6.44||-$10.95||-$46.73|
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."