Multiple key mortgage rates receded in the San Francisco area this week.
Key 30-year rate ticks down in San Francisco
The average rate on the benchmark 30-year fixed-rate mortgage rate for the San Francisco area slid to 3.41%, according to Bankrate's national survey of large lenders. The local rate was down 6 basis points from last week, and was lower than the national average rate of 3.54%. A basis point is one-hundredth of 1 percentage point.
In this week's survey, the mortgages had an average of 0.25 discount and origination points.
"The drop in the 30-year fixed is cause for celebration among those who waited to lock on a rate, as that turned out to be a smart bet," says Holden Lewis, Bankrate's senior mortgage analyst.
Monthly payments on a hypothetical $165,000 mortgage slid to $732.66, dropping $5.48 from last week, corresponding with the slip in mortgage rates.
Other San Francisco mortgage types decline
Jumbo mortgages are used for loan amounts above limits set by the Federal Housing Finance Agency; for the San Francisco area, that limit is $625,500.
The average rate for 15-year fixed-rate mortgages dropped 6 basis points as well, reaching 2.74%. Monthly payments on a hypothetical $165,000, 15-year fixed-rate mortgage followed rates ticking downwards, down $4.70 to $1,118.94.
"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," Lewis says.
The benchmark 5/1 adjustable-rate mortgage rate declined 6 points this week, slipping to 3.25%. 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.
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Weekly mortgage survey
|Results from Bankrate's survey of mortgage lenders conducted 9/28/2016. Monthly payments are for a $165,000 loan. The jumbo rate is for the minimum jumbo loan amount of $625,500 in the San Francisco area.|
|30-year fixed||15-year fixed||5-year ARM||30-year jumbo|
|This week's rate:||3.41%||2.74%||3.25%||3.53%|
|Change from last week:||-0.06||-0.06||-0.06||-0.10|
|Change from last week:||-$5.48||-$4.70||-$5.42||-$34.87|