Mortgage rates trended upward in the DC Metro area this week.
Benchmark 30-year rate up
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 climbed to 3.73%. Not only was the local rate above the national average rate of 3.63%, it was up 5 basis points from last week. A basis point is one-hundredth of 1 percentage point.
The mortgages in the survey for the current week had an average of 0.12 discount and origination points.
"With the 30-year fixed rising, it means that homebuyers and refinancers will find it more costly to borrow," says Holden Lewis, Bankrate's senior mortgage analyst.
The growth in the mortgage rate lifted 30-year fixed-rate monthly payments on a hypothetical $165,000 mortgage to $762.27, an uptick of $4.68 from last week.
Other mortgage types rise
The rate for 30-year jumbo mortgages also trended up this week, up 7 basis points to 3.66%. Jumbo loans are used for mortgages beyond limits set by the Federal Housing Finance Agency that can range from $417,000 to $625,000, depending on the location.
The average rate for 15-year fixed-rate mortgages ticked upward 7 basis points as well, reaching 3.05%. Monthly payments on a hypothetical $165,000, 15-year fixed-rate mortgage moved upward with rates, climbing $5.57 to $1,143.43.
"Because the 15-year fixed is a popular mortgage for homeowners who want to refinance, the increase means that a refi is less lucrative than it would have been before the rate rise," says Lewis.
The benchmark 5/1 adjustable-rate mortgage rate ticked upward to 3.39% this week, a rise of 2 basis points. The most common variety of variable-rate mortgage, 5/1 ARMs allow homeowners 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 July 27 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:||3.73%||3.05%||3.39%||3.66%|
|Change from last week:||+0.05||+0.07||+0.02||+0.07|
|Change from last week:||+$4.68||+$5.57||+$1.83||+$24.76|