Mortgage rates saw an increase in the Philadelphia area this week.
Key 30-year rate up in Philadelphia
The average rate on the benchmark 30-year fixed-rate mortgage rate for the Philadelphia area ticked upward to 3.63%, according to Bankrate's national survey of large lenders. Not only did the local rate trend up 2 basis points from last week, but it exceeded the national average rate of 3.57%. A basis point is one-hundredth of 1 percentage point.
In this week's survey, the mortgages had an average of 0.32 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 climb in the mortgage rate raised 30-year fixed-rate monthly payments on a hypothetical $165,000 mortgage to $752.95, an addition of $1.86 from last week.
Other Philadelphia mortgage types rise
The rate for 30-year jumbo mortgages also trended upward this week, increasing 2 points to 3.60%. Jumbo loans are used for mortgages beyond limits set by the Federal Housing Finance Agency. Those limits can range from $417,000 all the way up to $625,500, depending on the location.
The average rate for 15-year fixed-rate mortgages ticked upward 2 basis points as well, rising to 2.83%. Monthly payments on a hypothetical $165,000, 15-year fixed-rate mortgage followed rates higher, scaling up $1.58 to $1,126.02.
"Because the 15-year fixed is a popular mortgage for homeowners who want to refinance, the increase means that a refi is less advantageous than it would have been before the rate rise," says Lewis.
The benchmark 5/1 adjustable-rate mortgage rate grew 5 basis points this week, ticking up to 2.97%. The most common variety 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.
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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 $417,000 in Philadelphia.|
|30-year fixed||15-year fixed||5-year ARM||30-year jumbo|
|This week's rate:||3.63%||2.83%||2.97%||3.60%|
|Change from last week:||+0.02||+0.02||+0.05||+0.02|
|Change from last week:||+$1.86||+$1.58||+$4.45||+$4.69|