Multiple closely watched mortgage rates were down in the Phoenix area this week.
Benchmark 30-year rate declines in Phoenix
According to Bankrate's national survey of large lenders, the average rate on the benchmark 30-year fixed-rate mortgage rate for the Phoenix area ticked downwards to 3.49%. The local rate was down 11 basis points from last week, and was below 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 0.12 discount and origination points.
"The drop in the 30-year fixed will benefit those who waited to lock on a rate, as their decision paid off," says Holden Lewis, Bankrate's senior mortgage analyst.
Monthly payments on a hypothetical $165,000 mortgage slid to $740.00, dipping $10.09 from last week, corresponding with the decline in mortgage rates.
Other Phoenix mortgage types fall
Jumbo mortgages are used for loan amounts above limits set by the Federal Housing Finance Agency; for the Phoenix area, that limit is $417,000.
The average rate for 15-year fixed-rate mortgages slid to 2.79%, dropping 9 basis points from last week. Monthly payments on a hypothetical $165,000, 15-year fixed-rate mortgage followed rates ticking downwards, slipping $7.06 to $1,122.87.
"The 15-year fixed is a popular mortgage for homeowners who want to refinance. With this downward trend in the 15-year fixed, a refinance will be more tempting to some homeowners," Lewis says.
The benchmark 5/1 adjustable-rate mortgage rate diminished to 3.13% this week, a drop of 12 basis points. 5/1 adjustable-rate mortgages allow property owners 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 variety of variable-rate mortgage.
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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 Phoenix area.|
|30-year fixed||15-year fixed||5-year ARM||30-year jumbo|
|This week's rate:||3.49%||2.79%||3.13%||3.58%|
|Change from last week:||-0.11||-0.09||-0.12||-0.09|
|Change from last week:||-$10.09||-$7.06||-$10.73||-$21.00|