Several benchmark mortgage rates decreased in the New York metro area this week.
Key 30-year rate ticks down in New York metro
According to Bankrate's national survey of large lenders, the average rate on the benchmark 30-year fixed-rate mortgage for the New York metro area dropped to 4.16 percent. While the local rate was still more than the national average rate of 4.15 percent, it was down 2 basis points from last week. A basis point is one-hundredth of 1 percentage point.
For mortgages in this week's survey, there were an average of 0.16 discount and origination points.
"The drop in the 30-year fixed will benefit those who waited to lock on a rate, as their decision turned out to be a shrewd one," says Holden Lewis, Bankrate's senior mortgage analyst.
Monthly payments on a hypothetical $165,000 mortgage slid to $803.03, down $1.92 from last week, corresponding with the slip in mortgage rates.
No clear direction for other New York metro mortgage types
The average rate for 30-year jumbo mortgages went in the other direction this week, ticking up 3 basis points to 4.06 percent. Jumbo mortgages are used for loan amounts above limits set by the Federal Housing Finance Agency; for the New York metro area, that limit is $625,500.
The average rate for 15-year fixed-rate mortgages declined 1 basis point, dropping to 3.42 percent. Monthly payments on a hypothetical $165,000, 15-year fixed-rate mortgage followed rates down, slipping $0.81 to $1,173.08.
"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 advantageous to some homeowners," says Lewis.
The benchmark 5/1 adjustable-rate mortgage diminished 3 basis points this week, slipping to 3.43 percent. The most common type of variable-rate mortgage, 5/1 ARMs allow homeowners to pay a fixed rate for the first five years, and the rate adjusts once per year every year after.
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Weekly mortgage survey
|Results from Bankrate's survey of mortgage lenders conducted 12/7/2016. Monthly payments are for a $165,000 loan. The jumbo rate is for the minimum jumbo loan amount of $625,500 in the New York Metro area.|
|30-year fixed||15-year fixed||5-year ARM||30-year jumbo|
|This week's rate:||4.16%||3.42%||3.43%||4.06%|
|Change from last week:||-0.02||-0.01||-0.03||+0.03|
|Change from last week:||-$1.92||-$0.81||-$2.75||+$10.87|