Several closely-watched mortgage rates tapered off in the Minneapolis area this week.

Benchmark 30-year rate ticks down in Minneapolis

The average rate on the benchmark 30-year fixed-rate mortgage rate for the Minneapolis area diminished to 3.84 percent, according to Bankrate’s national survey of large lenders. The local rate was down a remarkable 16 basis points from last week, and was less than the national average rate of 3.99 percent. A basis point is one-hundredth of 1 percentage point.

The average mortgage in our survey this week had 0.81 discount and origination points.

The drop in the 30-year fixed will benefit those who waited to lock on a rate, as their wager paid off.

Monthly payments on a hypothetical $165,000 mortgage slid to $772.59, dropping $14.99 from last week, corresponding with the dip in mortgage rates.

No clear direction for other Minneapolis mortgage types

The average rate for 30-year jumbo mortgages went in the other direction this week, ticking up 6 basis points to 4.06%. Jumbo mortgages are used for loan amounts above limits set by the Federal Housing Finance Agency; for the Minneapolis area, that limit is $424,100.

The average rate for 15-year fixed-rate mortgages dropped 6 basis points, reaching 3.13 percent. Monthly payments on a hypothetical $165,000, 15-year fixed-rate mortgage followed rates ticking downwards, dropping $4.78 to $1,149.80.

The 15-year fixed is a popular mortgage for homeowners who want to refinance. With this fall in the 15-year fixed, a refinance will be more beneficial to some homeowners.

The popular 5/1 adjustable-rate mortgage rate fell a hefty 38 basis points this week, slipping to 3.25 percent. The most common type of variable-rate mortgage, 5/1 ARMs allow homeowners to pay a fixed rate for the first 5 years, and the rate adjusts once per year every year after.

Compare mortgage rates in your area now.

Weekly mortgage survey

Results from Bankrate’s survey of mortgage lenders conducted September 13, 2017. Monthly payments are for a $165,000 loan. The jumbo rate is for the minimum jumbo loan amount of $424,100 in the Minneapolis area.
30-year fixed 15-year fixed 5-year ARM 30-year jumbo
This week’s rate: 3.84% 3.13% 3.25% 4.06%
Change from last week: -0.16 -0.06 -0.38 +0.06
Monthly payment: $772.59 $1,149.80 $718.09 $2,039.42
Change from last week: -$14.99 -$4.78 -$33.96 +$14.75

Methodology: The “ 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 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.”