Several benchmark mortgage rates receded in the DC Metro area this week.
Key 30-year rate falls in DC Metro
The average rate on the benchmark 30-year fixed-rate mortgage rate for the DC Metro area fell to 3.60%, according to Bankrate's national survey of large lenders. While the local rate was higher than the national average rate of 3.54%, it was down 9 basis points from last week. A basis point is one-hundredth of 1 percentage point.
The mortgages in the survey for this week had an average of 0.04 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 fell to $750.16, slipping $8.32 from last week, corresponding with the slip in mortgage rates.
Other DC Metro mortgage types decline
Jumbo mortgages are used for loan amounts above limits set by the Federal Housing Finance Agency; for the DC Metro area, that limit is $625,500.
The average rate for 15-year fixed-rate mortgages declined to 2.96%, dropping 11 basis points from last week. Monthly payments on a hypothetical $165,000, 15-year fixed-rate mortgage followed rates trending down, tapering off $8.69 to $1,136.29.
"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 tempting to some homeowners," Lewis says.
The benchmark 5/1 adjustable-rate mortgage rate slid 5 basis points this week, slipping to 3.30%. The most common variety 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.
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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 DC Metro area.|
|30-year fixed||15-year fixed||5-year ARM||30-year jumbo|
|This week's rate:||3.60%||2.96%||3.30%||3.47%|
|Change from last week:||-0.09||-0.11||-0.05||-0.09|
|Change from last week:||-$8.32||-$8.69||-$4.54||-$31.27|