A number of key mortgage rates saw an increase in the D.C. metro area this week.
Key 30-year rate rises in D.C. metro
The average rate on the benchmark 30-year fixed-rate mortgage for the D.C. metro area advanced to 4.31 percent, according to Bankrate's national survey of large lenders. Not only did the local rate trend up 9 basis points from last week, but it topped the national average rate of 4.13 percent. A basis point is one-hundredth of 1 percentage point.
For mortgages in this week's survey, there were an average of 0.15 discount and origination points.
"With the 30-year fixed rising, it means that homebuyers and refinancers will find their borrowing costs have grown," says Holden Lewis, Bankrate's senior mortgage analyst.
The climb in the mortgage rate elevated 30-year fixed-rate monthly payments on a hypothetical $165,000 mortgage to $817.51, a difference of $8.75 from last week.
Other D.C. metro mortgage types rise
The rate for 30-year jumbo mortgages also ticked up this week, climbing 3 points to 4.09 percent. Jumbo mortgages are used for loan amounts above limits set by the Federal Housing Finance Agency; for the D.C. metro area, that limit is $625,500.
The average rate for 15-year fixed-rate mortgages climbed 11 basis points as well, reaching 3.47 percent. Monthly payments on a hypothetical $165,000, 15-year fixed-rate mortgage moved up with rates, ticking up $8.92 to $1,177.13.
"Because the 15-year fixed is a popular mortgage for homeowners who want to refinance, the increase means that a refi is less profitable than it would have been before the rate rise," Lewis says.
The benchmark 5/1 adjustable-rate mortgage rate rose to 3.80 percent this week, a rise of a substantial 17 basis points. 5/1 adjustable-rate mortgages allow property owners to pay a fixed rate for the first five years, and the rate adjusts once per year every year after. They are the most common variety of variable-rate mortgage.
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Weekly mortgage survey
|Results from Bankrate's survey of mortgage lenders conducted 11/30/2016. Monthly payments are for a $165,000 loan. The jumbo rate is for the minimum jumbo loan amount of $625,500 in the D.C. metro area.|
|30-year fixed||15-year fixed||5-year ARM||30-year jumbo|
|This week's rate:||4.31%||3.47%||3.80%||4.09%|
|Change from last week:||+0.09||+0.11||+0.17||+0.03|
|Change from last week:||+$8.75||+$8.92||+$16.05||+$10.89|