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Mortgage rates in Washington, DC

By Claes Bell · Bankrate.com
Thursday, September 29, 2016
Posted: 8 am ET

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
Monthly payment: $750.16 $1,136.29 $722.63 $2,798.31
Change from last week: -$8.32 -$8.69 -$4.54 -$31.27
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6 Comments
Elden Raring
August 27, 2016 at 2:14 am

Real estate prices tend to be higher in the nation's capitol compared to the national median. The average median price for a home was $345,000 in February in Washington, DC, well above the national average which is about $186,000. A comparison of nearby states, When purchasing real estate in the DC's area you have the option of a conventional loan or a jumbo loan. If you are considering homes for which you'd be borrowing over $400,000, it may be a good idea to find our more about jumbo loans and be prepared to discuss them with your lender.

Bryant Beier
September 04, 2015 at 11:39 am

Lenders offer different rates for mortgages depending on how the property will be used. For example, a loan for a rental property is more expensive than a loan for a primary residence because lenders believe investors are more likely to stop paying their mo 15e7 rtgage and walk away from a rental property than they are from their own home.

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