Several key mortgage rates dropped in the Seattle area this week.
Benchmark 30-year rate declines in Seattle
According to Bankrate's national survey of large lenders, the average rate on the benchmark 30-year fixed-rate mortgage rate for the Seattle area fell to 4.00 percent. The local rate was down 8 basis points from last week, and was lower than the national average rate of 4.05 percent. A basis point is one-hundredth of 1 percentage point.
In this week's survey, the mortgages had an average of 0.32 discount and origination points.
The drop in the 30-year fixed is great news for those who waited to lock on a rate, as their decision turned out to be a shrewd one.
Monthly payments on a hypothetical $165,000 mortgage slid to $787.74, decreasing $7.59 from last week, corresponding with the decline in mortgage rates.
No clear direction for other Seattle mortgage types
The average rate for 30-year jumbo mortgages fell this week, down 8 basis points to 4.17 percent. Jumbo mortgages are used for loan amounts above limits set by the Federal Housing Finance Agency; for the Seattle area, that limit is $592,250.
The average rate for 15-year fixed-rate mortgages ticked downwards to 3.29 percent, down 11 basis points from last week. Monthly payments on a hypothetical $165,000, 15-year fixed-rate mortgage followed rates down, dropping $8.82 to $1,162.61.
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 profitable to some homeowners.
The benchmark 5/1 adjustable-rate mortgage rate stood at 3.50 percent this week. 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 variety of variable-rate mortgage.
Weekly mortgage survey
|Results from Bankrate's survey of mortgage lenders conducted August 16, 2017. Monthly payments are for a $165,000 loan. The jumbo rate is for the minimum jumbo loan amount of $592,250 in the Seattle area.|
|30-year fixed||15-year fixed||5-year ARM||30-year jumbo|
|This week's rate:||4.00%||3.29%||3.50%||4.17%|
|Change from last week:||-0.08||-0.11||N/C||-0.08|
|Change from last week:||-$7.59||-$8.82||N/C||-$27.54|
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."