Mortgage rates diverged in the Philadelphia area this week.
Key 30-year rate ticks down in Philadelphia
The average rate on the benchmark 30-year fixed-rate mortgage rate for the Philadelphia area dropped to 3.70%, according to Bankrate's national survey of large lenders. While the local rate was down 3 basis points from last week, it was more than the national average rate of 3.64%. 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 will benefit those who waited to lock on a rate, as their decision turned out to be a shrewd one," says Holden Lewis, Bankrate's senior mortgage analyst.
Monthly payments on a hypothetical $165,000 mortgage slid to $759.47, down $2.80 from last week, corresponding with the dip in mortgage rates.
Other Philadelphia mortgage types mixed
Jumbo mortgages are used for loan amounts above limits set by the Federal Housing Finance Agency; for the Philadelphia area, that limit is $417,000.
The average rate for 15-year fixed-rate mortgages rose to 2.96%, growing 1 basis point from last week. Monthly payments on a hypothetical $165,000, 15-year fixed-rate mortgage followed rates higher, climbing $0.79 to $1,136.29.
"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 rose 4 basis points this week, up to 3.01%. 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 survey of mortgage lenders conducted 10/26/2016. Monthly payments are for a $165,000 loan. The jumbo rate is for the minimum jumbo loan amount of $417,000 in the Philadelphia area.|
|30-year fixed||15-year fixed||5-year ARM||30-year jumbo|
|This week's rate:||3.70%||2.96%||3.01%||3.70%|
|Change from last week:||-0.03||+0.01||+0.04||-0.03|
|Change from last week:||-$2.80||+$0.79||+$3.57||-$7.07|