Mortgage rates rose this week in Washington, D.C. Meanwhile, the District and its surrounding cities have a low percentage of cash buyers, the Washington Business Journal reported.
Real estate firm CoreLogic Inc. found the Greater Washington area at the bottom of the list for all-cash sales among the 25 largest metro areas nationally. In October, all-cash sales averaged 35.5 percent in the country, yet the D.C. market had only 16 percent. This is down nearly 8 percent from a year ago.
The Journal stated that all-cash buyers are often investors looking for a bargain, and the Washington housing market doesn't have many bargains. All-cash transactions peaked nationally in January 2011 at 46.4 percent, according to CoreLogic. By 2017, CoreLogic says cash sales should be back to pre-crisis levels.
The benchmark 30-year fixed-rate mortgage in Washington, D.C., grew to 3.93 percent from 3.8 percent, according to the Bankrate.com national survey of large lenders. The mortgages in this week's survey had an average total of 0.08 discount and origination points. Nationally, the 30-year fixed-rate mortgage was 3.81 percent.
The benchmark 30-year jumbo mortgage, for loans of $625,500 and more, climbed to 3.88 percent from 3.79 percent. The benchmark 15-year fixed-rate mortgage jumped to 3.21 percent from 3.07 percent. The benchmark 5/1 adjustable-rate mortgage spiked to 3.45 percent from 3.28 percent.
Weekly mortgage survey
|Results from Bankrate's Jan. 21 survey of mortgage lenders. Monthly payments are for a $165,000 loan. The jumbo rate is for the minimum jumbo loan amount of $625,500 in DC Metro.|
|30-year fixed||15-year fixed||5-year ARM||30-year jumbo|
|This week's rate:||3.93%||3.21%||3.45%||3.88%|
|Change from last week:||+0.13||+0.14||+0.17||+0.09|
|Change from last week:||+$12.36||+$11.24||+$15.69||+$32.30|