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.
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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|
|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."