Mortgage rates moved in different directions in the Boston area this week.
Benchmark 30-year rate flat in Boston
According to Bankrate’s national survey of large lenders, the average rate on the benchmark 30-year fixed-rate mortgage rate for the Boston area stood at 4.00 percent.
Mortgages in this week’s survey had an average of 0.16 discount and origination points.
With the most popular mortgage rate unchanged, it’s neither good news nor bad news for potential borrowers who were waiting to lock a mortgage rate.
Monthly payments on a hypothetical $165,000 30-year fixed-rate mortgage were also steady, holding at $787.74.
Other Boston mortgage types slide
Breaking ranks with the 30-year conventional mortgage the average rate for 30-year jumbo mortgages fell this week, down 3 basis points to 3.95 percent. Jumbo mortgages are used for loan amounts above limits set by the Federal Housing Finance Agency; for the Boston area, that limit is $598,000.
The average rate for 15-year fixed-rate mortgages dropped 3 basis points as well, reaching 3.31 percent. Monthly payments on a hypothetical $165,000, 15-year fixed-rate mortgage followed rates lower, dropping $2.41 to $1,164.22.
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 attractive to some homeowners.
The popular 5/1 adjustable-rate mortgage rate diminished to 3.59 percent this week, a drop of 2 basis points. 5/1 adjustable-rate mortgages allow homeowners 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 variety of variable-rate mortgage.
Weekly mortgage survey
|Results from Bankrate’s survey of mortgage lenders conducted December 13, 2017. Monthly payments are for a $165,000 loan. The jumbo rate is for the minimum jumbo loan amount of $598,000 in the Boston area.|
|30-year fixed||15-year fixed||5-year ARM||30-year jumbo|
|This week’s rate:||4.00%||3.31%||3.59%||3.95%|
|Change from last week:||N/C||-0.03||-0.02||-0.03|
|Change from last week:||N/C||-$2.41||-$1.85||-$10.30|
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.”