Several important mortgage rates ticked up in the Phoenix area this week.
Key 30-year rate higher in Phoenix
The average rate on the benchmark 30-year fixed-rate mortgage rate for the Phoenix area climbed to 4.10 percent, according to Bankrate’s national survey of large lenders. Not only did the local rate climb 10 basis points from last week, but it was higher than the national average rate of 4.09 percent. A basis point is one-hundredth of 1 percentage point.
For mortgages in this week’s survey, there were an average of 0.12 discount and origination points.
With the 30-year fixed rising, it means that homebuyers and refinancers will find their borrowing costs have increased.
The increase in the mortgage rate lifted 30-year fixed-rate monthly payments on a hypothetical $165,000 mortgage to $797.28, a difference of $9.60 from last week.
No clear direction for other Phoenix mortgage types
Conversely, the average rate for 30-year jumbo mortgages, used for loans of $625,500 or more, remained unchanged this week, remaining at 4.25 percent. Jumbo mortgages are used for loan amounts above limits set by the Federal Housing Finance Agency; for the Phoenix area, that limit is $424,100.
The average rate for 15-year fixed-rate mortgages climbed to 3.46 percent, climbing 2 basis points from last week. Monthly payments on a hypothetical $165,000, 15-year fixed-rate mortgage followed rates higher, up $1.62 to $1,176.32.
Because the 15-year fixed is a popular mortgage for homeowners who want to refinance, the increase means that a refi is less profitable than it would have been before the rate rise.
The popular 5/1 adjustable-rate mortgage rate rose to 3.96 percent this week, a rise of 8 basis points. 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.
Weekly mortgage survey
|Results from Bankrate’s survey of mortgage lenders conducted November 15, 2017. Monthly payments are for a $165,000 loan. The jumbo rate is for the minimum jumbo loan amount of $424,100 in the Phoenix area.|
|30-year fixed||15-year fixed||5-year ARM||30-year jumbo|
|This week’s rate:||4.10%||3.46%||3.96%||4.25%|
|Change from last week:||+0.10||+0.02||+0.08||N/C|
|Change from last week:||+$9.60||+$1.62||+$7.61||N/C|
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.”