A number of key mortgage rates receded in the DC Metro area this week.
Key 30-year rate ticks down 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 dropped to 4.16 percent. While the local rate was above the national average rate of 4.09 percent, it was down 5 basis points from last week. A basis point is one-hundredth of 1 percentage point.
In the survey for the current week, the mortgages had an average of 0.07 discount and origination points.
The drop in the 30-year fixed will benefit those who waited to lock on a rate, as their wager paid off.
Monthly payments on a hypothetical $165,000 mortgage slid to $803.03, decreasing $4.80 from last week, corresponding with the dip in mortgage rates.
Other DC Metro mortgage types mixed
The average rate for 30-year jumbo mortgages went in the other direction this week, climbing 10 basis points to 4.19%. 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 3.41 percent, rising 2 basis points from last week. Monthly payments on a hypothetical $165,000, 15-year fixed-rate mortgage moved upward with rates, increasing $1.62 to $1,172.28.
Because the 15-year fixed is a popular mortgage for homeowners who want to refinance, the increase means that a refi is less beneficial than it would have been before the rate rise.
The benchmark 5/1 adjustable-rate mortgage rate slid 6 points this week, down to 3.80 percent. 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 common type of variable-rate mortgage.
Weekly mortgage survey
|Results from Bankrate's survey of mortgage lenders conducted July 26, 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:||4.16%||3.41%||3.80%||4.19%|
|Change from last week:||-0.05||+0.02||-0.06||+0.10|
|Change from last week:||-$4.80||+$1.62||-$5.62||+$37.22|
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."