Mortgage rates climbed in the Philadelphia area this week.
Key 30-year rate rises
According to Bankrate's national survey of large lenders, the average rate on the benchmark 30-year fixed-rate mortgage rate for the Philadelphia area rose to 3.65%. Not only did the local rate ascend 8 basis points from last week, but it eclipsed the national average rate of 3.60%. A basis point is one-hundredth of 1 percentage point.
The average mortgage in our survey this week had .25 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 increase in the mortgage rate elevated 30-year fixed-rate monthly payments on a hypothetical $165,000 mortgage to $754.80, an addition of $7.46 from last week.
Other mortgage types see increases
The rate for 30-year jumbo mortgages also rose this week, climbing 7 basis points to 3.64%. Jumbo mortgages are used for loan amounts above limits set by the Federal Housing Finance Agency that can range from $417,000 to $625,000, depending on the location.
The average rate for 15-year fixed-rate mortgages increased 4 basis points as well, reaching 2.85%. Monthly payments on a hypothetical $165,000, 15-year fixed-rate mortgage followed rates lower, falling $3.52 to $682.37.
"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," says Lewis.
The benchmark 5/1 adjustable-rate mortgage rate rose 8 points this week, increasing to 2.97%. 5/1 adjustable-rate mortgages allow homeowners to pay a fixed rate for the first 5 years, and the rate adjusts once per year every year after. They are the most popular type of variable-rate mortgage.
RATE SEARCH: Compare mortgage rates in your area now.
Weekly mortgage survey
|Results from Bankrate's July 20 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:||3.65%||2.85%||2.97%||3.64%|
|Change from last week:||+0.08||+0.04||+0.08||+0.07|
|Change from last week:||+$7.46||+$3.16||+$7.12||+$16.48|