Multiple benchmark mortgage rates decreased in the DC Metro area this week.
Benchmark 30-year rate shows decline 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 ticked downwards to 4.28 percent. The local rate was down a substantial 17 basis points from last week, and was less than the national average rate of 4.29 percent. A basis point is one-hundredth of 1 percentage point.
The mortgages in this week's survey averaged 0.11 discount and origination points.
"The drop in the 30-year fixed spells great news for those who waited to lock on a rate, as that turned out to be a smart bet," says Holden Lewis, Bankrate's senior mortgage analyst.
Monthly payments on a hypothetical $165,000 mortgage fell to $814.60, dipping $16.37 from last week, corresponding with the decline in mortgage rates.
Other DC Metro mortgage types fall
The average rate for 30-year jumbo mortgages fell this week, down 28 basis points to 4.19 percent. 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 declined to 3.46 percent, down a substantial 39 basis points from last week. Monthly payments on a hypothetical $165,000, 15-year fixed-rate mortgage followed rates ticking downwards, dipping $31.29 to $1,176.32.
"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 profitable to some homeowners," Lewis says.
The benchmark 5/1 adjustable-rate mortgage rate slid to 3.42 percent this week, a drop of an impressive 41 basis points. 5/1 adjustable-rate mortgages allow property owners 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 March 22, 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:||4.28%||3.46%||3.42%||4.19%|
|Change from last week:||-0.17||-0.39||-0.41||-0.28|
|Change from last week:||-$16.37||-$31.29||-$37.04||-$103.01|
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."