Multiple important mortgage rates ticked up in the Phoenix area this week.
Key 30-year rate ticks up 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 grew to 3.64%. Increasing 3 basis points from last week, the local rate is now in sync with the national rate. A basis point is one-hundredth of 1 percentage point.
In the survey for the current week, the mortgages had an average of 0.13 discount and origination points.
"With the 30-year fixed rising, it means that homebuyers and refinancers will find their borrowing costs have grown," says Holden Lewis, Bankrate's senior mortgage analyst.
The climb in the mortgage rate raised 30-year fixed-rate monthly payments on a hypothetical $165,000 mortgage to $753.88, an addition of $2.79 from last week.
No clear direction for other Phoenix mortgage types
On the other hand, the average rate for 30-year jumbo mortgages fell this week, down 4 basis points to 3.67%. 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 rose 2 basis points, reaching 2.90%. Monthly payments on a hypothetical $165,000, 15-year fixed-rate mortgage followed rates higher, up $1.58 to $1,131.54.
"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 rate fell 4 points this week, falling to 3.25%. 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 common type of variable-rate mortgage.
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Weekly mortgage survey
|Results from Bankrate's survey of mortgage lenders conducted 10/19/2016. 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:||3.64%||2.90%||3.25%||3.67%|
|Change from last week:||+0.03||+0.02||-0.04||-0.04|
|Change from last week:||+$2.79||+$1.58||-$3.62||-$9.40|