Mortgage rates jumped this week, ending two weeks of declining interest rates that spurred some homebuyers to take action.
The average rate for the benchmark 30-year fixed-rate mortgage rose five basis points in Bankrate’s weekly survey of lenders.
Although this increase was the highest in weeks, interest rates are still lower than the spikes seen earlier this year. So there’s still a good window of time to find a lower rate on a mortgage or refinance.
Time to refi
Overall, refinances represented more than 51 percent of the total mortgage activity, reaching their highest level since September.
“Additional developments surrounding the administration’s tax reform plan pushed rates lower at the beginning of the week, but this was effectively offset by news of stronger economic growth in Europe,” says Joel Kan, economist at MBA.
Homebuyers are taking action
The lower rates spurred more people to get a mortgage, causing a 16 percent jump in home purchase loans in October compared to a year ago, according to the MBA’s home builder survey.
The growth in mortgages also marked a turnaround from declines in September, when areas like Florida, Texas and Puerto Rico were reeling from major hurricanes.
“October registered the strongest growth rate in applications so far this year, following September’s hurricane-related decrease,” says Lynn Fisher, MBA’s vice president of research and economics.
The benchmark 30-year fixed-rate mortgage rose this week to 4.09 percent from 4.04 percent, according to Bankrate’s weekly survey of large lenders. A year ago, it was 4.01 percent. Four weeks ago, the rate was 4.04 percent. The 30-year fixed-rate average for this week is 0.35 percentage points below the 52-week high of 4.44 percent, and is 0.14 percentage points higher than the 52-week low of 3.95 percent.
The 30-year fixed mortgages in this week’s survey had an average total of 0.32 discount and origination points.
Over the past 52 weeks, the 30-year fixed has averaged 4.15 percent. This week’s rate is 0.06 percentage points lower than the 52-week average.
- The 15-year fixed-rate mortgage rose to 3.39 percent from 3.33 percent.
- The 5/1 adjustable-rate mortgage rose to 3.65 percent from 3.60 percent.
- The 30-year fixed-rate jumbo mortgage rose to 4.13 percent from 4.10 percent.
At the current 30-year fixed rate, you’ll pay $482.62 each month for every $100,000 you borrow, up from $479.72 last week.
At the current 15-year fixed rate, you’ll pay $709.49 each month for every $100,000 you borrow, up from $706.56 last week.
At the current 5/1 ARM rate, you’ll pay $457.46 each month for every $100,000 you borrow, up from $454.65 last week.
Results of Bankrate.com’s weekly national survey of large lenders conducted November 15, 2017 and the effect on monthly payments for a $165,000 loan:
|Breakdown||30-year fixed||15-year fixed||5-year ARM|
|This week’s rate:||4.09%||3.39%||3.65%|
|Change from last week:||+0.05||+0.06||+0.05|
|Change from last week:||+$4.78||+$4.83||+$4.65|