A number of important mortgage rates climbed in the Philadelphia area this week.
Benchmark 30-year rate rises in Philadelphia
According to Bankrate's national survey of large lenders, the average rate on the benchmark 30-year fixed-rate mortgage for the Philadelphia area ticked upward to 4.28 percent. Not only did the local rate ascend 5 basis points from last week, but it topped the national average rate of 4.15 percent. A basis point is one-hundredth of 1 percentage point.
In this week's survey, the mortgages had an average of 0.19 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 growth in the mortgage rate elevated 30-year fixed-rate monthly payments on a hypothetical $165,000 mortgage to $814.60, an increase of $4.85 from last week.
Other Philadelphia mortgage types rise
The rate for 30-year jumbo mortgages also ticked upward this week, increasing 4 basis points to 4.16 percent. 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 ticked upward 4 basis points as well, reaching 3.40 percent. Monthly payments on a hypothetical $165,000, 15-year fixed-rate mortgage moved upward with rates, climbing $3.23 to $1,171.47.
"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," Lewis says.
The benchmark 5/1 adjustable-rate mortgage climbed to 3.42 percent this week, a rise of 3 basis points. The most common type of variable-rate mortgage, 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.
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Weekly mortgage survey
|Results from Bankrate's survey of mortgage lenders conducted 12/7/2016. 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:||4.28%||3.40%||3.42%||4.16%|
|Change from last week:||+0.05||+0.04||+0.03||+0.04|
|Change from last week:||+$4.85||+$3.23||+$2.75||+$9.72|