Several key mortgage rates receded in the Tampa area this week.
Benchmark 30-year rate shows decline in Tampa
According to Bankrate's national survey of large lenders, the average rate on the benchmark 30-year fixed-rate mortgage rate for the Tampa area declined to 3.85 percent. The local rate was below the national average rate of 4.04 percent, and was down 8 basis points from last week. A basis point is one-hundredth of 1 percentage point.
The mortgages in this week's survey averaged 0.10 discount and origination points.
The drop in the 30-year fixed spells great news for those who waited to lock on a rate, as that turned out to be a smart bet.
Monthly payments on a hypothetical $165,000 mortgage slid to $773.53, falling $7.52 from last week, corresponding with the drop in mortgage rates.
Other Tampa mortgage types mixed
On the other hand, the average rate for 30-year jumbo mortgages ticked up this week, growing a hefty 27 basis points to 4.08 percent. Jumbo mortgages are used for loan amounts above limits set by the Federal Housing Finance Agency; for the Tampa area, that limit is $424,100.
The average rate for 15-year fixed-rate mortgages slid 9 basis points, reaching 3.11 percent. Monthly payments on a hypothetical $165,000, 15-year fixed-rate mortgage followed rates trending down, tapering off $7.16 to $1,148.21.
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 advantageous to some homeowners.
The popular 5/1 adjustable-rate mortgage rate rose a whopping 29 basis points this week, up to 3.29 percent. The most common type of variable-rate mortgage, 5/1 ARMs allow property owners to pay a fixed rate for the first 5 years, and the rate adjusts once per year every year after.
Weekly mortgage survey
|Results from Bankrate's survey of mortgage lenders conducted September 20, 2017. Monthly payments are for a $165,000 loan. The jumbo rate is for the minimum jumbo loan amount of $424,100 in the Tampa area.|
|30-year fixed||15-year fixed||5-year ARM||30-year jumbo|
|This week's rate:||3.85%||3.11%||3.29%||4.08%|
|Change from last week:||-0.08||-0.09||+0.29||+0.27|
|Change from last week:||-$7.52||-$7.16||+$26.59||+$66.89|
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."