Several closely watched mortgage rates receded in the Philadelphia area this week.
Benchmark 30-year rate shows decline in Philadelphia
The average rate on the benchmark 30-year fixed-rate mortgage rate for the Philadelphia area dropped to 3.60%, according to Bankrate's national survey of large lenders. While the local rate was down 9 basis points from last week, it was above the national average rate of 3.54%. A basis point is one-hundredth of 1 percentage point.
The mortgages in this week's survey had an average of 0.22 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 fell to $750.16, decreasing $8.32 from last week, corresponding with the drop in mortgage rates.
Other Philadelphia mortgage types fall
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 fell to 2.83%, down 6 basis points from last week. Monthly payments on a hypothetical $165,000, 15-year fixed-rate mortgage followed rates on the decline, dropping $4.72 to $1,126.02.
"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 attractive to some homeowners," Lewis says.
The benchmark 5/1 adjustable-rate mortgage rate slid to 2.92% this week, a drop of 5 basis points. 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 survey of mortgage lenders conducted 9/28/2016. 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:||3.60%||2.83%||2.92%||3.59%|
|Change from last week:||-0.09||-0.06||-0.05||-0.14|
|Change from last week:||-$8.32||-$4.72||-$4.42||-$32.63|