Rates Blog

Finance Blogs » Rates Blog » Mortgage rates in Philadelphia

Mortgage rates in Philadelphia

By Claes Bell · Bankrate.com
Thursday, January 12, 2017
Posted: 9 am ET

Multiple benchmark mortgage rates declined in the Philadelphia area this week.

Benchmark 30-year rate slides in Philadelphia

The average rate on the benchmark 30-year fixed-rate mortgage for the Philadelphia area diminished to 4.28 percent, according to Bankrate's national survey of large lenders. While the local rate was down 8 basis points from last week, it was still more than the national average rate of 4.20 percent. A basis point is one-hundredth of 1 percentage point.

The mortgages in the survey for the current week had an average of 0.27 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," says Holden Lewis, Bankrate's senior mortgage analyst.

Monthly payments on a hypothetical $165,000 mortgage fell to $814.60, decreasing $7.72 from last week, corresponding with the slip 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 $424,100.

The average rate for 15-year fixed-rate mortgages ticked downwards to 3.46 percent, falling 11 basis points from last week. Monthly payments on a hypothetical $165,000, 15-year fixed-rate mortgage followed rates trending down, losing $8.88 to $1,176.32.

"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 advantageous to some homeowners," Lewis says.

The benchmark 5/1 adjustable-rate mortgage rate dropped 2 points this week, slipping to 3.41 percent. 5/1 ARMs allow homeowners to pay a fixed rate for the first five years, and the rate adjusts once per year every year after. They are the most common variety of variable-rate mortgage.

RATE SEARCH: Compare mortgage rates in your area now.

Weekly mortgage survey

Results from Bankrate's survey of mortgage lenders conducted 1/11/2017. Monthly payments are for a $165,000 loan. The jumbo rate is for the minimum jumbo loan amount of $424,100 in the Philadelphia area.
30-year fixed 15-year fixed 5-year ARM 30-year jumbo
This week's rate: 4.28% 3.46% 3.41% 4.25%
Change from last week: -0.08 -0.11 -0.02 -0.06
Monthly payment: $814.60 $1,176.32 $732.66 $2,086.32
Change from last week: -$7.72 -$8.88 -$1.83 -$14.87

Methodology: The "Bankrate.com 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 Bankrate.com 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."

Bankrate wants to hear from you and encourages comments. We ask that you stay on topic, respect other people's opinions, and avoid profanity, offensive statements, and illegal content. Please keep in mind that we reserve the right to (but are not obligated to) edit or delete your comments. Please avoid posting private or confidential information, and also keep in mind that anything you post may be disclosed, published, transmitted or reused.

By submitting a post, you agree to be bound by Bankrate's terms of use. Please refer to Bankrate's privacy policy for more information regarding Bankrate's privacy practices.
Archie Pendon
September 01, 2016 at 2:43 am

Fortunately, GOBankingRates makes the financing process easier by helping you find the best mortgage loan rates Philadelphia has to offer.

Add a comment

(Comments may take 5-10 minutes to appear)