Mortgage rates in Phoenix took a dive this week. Meanwhile, more homeowners are taking out a second mortgage in the Valley.
This week's rates
The benchmark 30-year fixed-rate mortgage in Phoenix fell to 3.89 percent from 4.13 percent, according to the Bankrate.com national survey of large lenders. The mortgages in this week's survey had an average total of 0.06 discount and origination points. Nationally, the 30-year fixed-rate mortgage was 4.01 percent.
Home equity originations rise
Home equity loans in Phoenix increased by 60 percent in June compared to a year ago, according to a recent report by RealtyTrac. That's the fifth biggest increase in the nation during that time period.
Nationally, HELOC originations accounted for 15.4 percent of all loan originations during the first eight months of this year, the highest it's been since 2008.
The rise in second mortgages represents increasing homeowner confidence in the housing recovery, notes the report. In addition, more homeowners have now regained equity lost during the crisis. Around 10 million homeowners nationwide now have at least 50 percent equity in their homes, according to RealtyTrac.
The benchmark 30-year jumbo mortgages, for loans of $417,000 and up, fell to 3.92 percent from 4 percent. The benchmark 15-year fixed-rate mortgage fell to 3.1 percent from 3.35 percent. The benchmark 5/1 adjustable-rate mortgage fell to 2.96 percent from 3.17 percent.
Weekly mortgage survey
|Results from Bankrate's Oct. 15 survey of mortgage lenders. Monthly payments are for a $165,000 loan. The jumbo rate is for the minimum jumbo loan amount of $417,000 in Phoenix.|
|30-year fixed||15-year fixed||5-year ARM||30-year jumbo|
|This week's rate:||3.89%||3.10%||2.96%||3.92%|
|Change from last week:||-0.24||-0.25||-0.21||-0.08|
|Change from last week:||-$22.50||-$19.82||-$18.49||-$19.09|