Several benchmark mortgage rates advanced in the DC Metro area this week.
Benchmark 30-year rate higher in DC Metro
According to Bankrate's national survey of large lenders, the average rate on the benchmark 30-year fixed-rate mortgage rate for the DC Metro area grew to 4.41 percent. Not only did the local rate eclipse the national average rate of 4.35 percent, it was up a remarkable 14 basis points from last week. A basis point is one-hundredth of 1 percentage point.
In this week's survey, the mortgages had an average of 0.15 discount and origination points.
"With the 30-year fixed rising, it means that homebuyers and refinancers will find it more expensive to borrow," says Holden Lewis, Bankrate's senior mortgage analyst.
The growth in the mortgage rate elevated 30-year fixed-rate monthly payments on a hypothetical $165,000 mortgage to $827.23, an addition of $13.71 from last week.
No clear direction for other DC Metro mortgage types
The rate for 30-year jumbo mortgages also trended upward this week, rising a hefty 19 basis points to 4.53 percent. Jumbo mortgages are used for loan amounts above limits set by the Federal Housing Finance Agency; for the DC Metro area, that limit is $636,150.
The average rate for 15-year fixed-rate mortgages increased to 3.75 percent, climbing 8 basis points from last week. Monthly payments on a hypothetical $165,000, 15-year fixed-rate mortgage moved upward with rates, ratcheting up $6.56 to $1,199.92.
"Because the 15-year fixed is a popular mortgage for homeowners who want to refinance, the increase means that a refi is less advantageous than it would have been before the rate rise," says Lewis.
The benchmark 5/1 adjustable-rate mortgage rate declined to 3.76 percent this week, a drop of 3 basis points. 5/1 adjustable-rate mortgages allow property owners to pay a fixed rate for the first 5 years, and the rate adjusts once per year every year after. They are the most common type of variable-rate mortgage.
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Weekly mortgage survey
|Results from Bankrate's survey of mortgage lenders conducted 2/15/2017. Monthly payments are for a $165,000 loan. The jumbo rate is for the minimum jumbo loan amount of $636,150 in the DC Metro area.|
|30-year fixed||15-year fixed||5-year ARM||30-year jumbo|
|This week's rate:||4.41%||3.75%||3.76%||4.53%|
|Change from last week:||+0.14||+0.08||-0.03||+0.19|
|Change from last week:||+$13.71||+$6.56||-$2.81||+$72.34|
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."