A number of benchmark mortgage rates trended upward in the Chicago area this week.
Key 30-year rate ticks up in Chicago
The average rate on the benchmark 30-year fixed-rate mortgage rate for the Chicago area climbed to 4.11 percent, according to Bankrate’s national survey of large lenders. Not only did the local rate eclipse the national average rate of 4.09 percent, it was up 1 basis point from last week. A basis point is one-hundredth of 1 percentage point.
For mortgages in this week’s survey, there were an average of 0.30 discount and origination points.
With the 30-year fixed rising, it means that homebuyers and refinancers will find it more expensive to borrow.
The climb in the mortgage rate lifted 30-year fixed-rate monthly payments on a hypothetical $165,000 mortgage to $798.23, a difference of $0.96 from last week.
Other Chicago mortgage types mixed
Breaking ranks with the 30-year conventional mortgage, the average rate for 30-year jumbo mortgages remained unchanged this week, remaining at 3.94 percent. Jumbo mortgages are used for loan amounts above limits set by the Federal Housing Finance Agency; for the Chicago area, that limit is $424,100.
The average rate for 15-year fixed-rate mortgages ticked upward 3 basis points, reaching 3.50 percent. Monthly payments on a hypothetical $165,000, 15-year fixed-rate mortgage increased along with rates, up $2.43 to $1,179.56.
Because the 15-year fixed is a popular mortgage for homeowners who want to refinance, the increase means that a refi is less advantageous than it would have been before the rate rise.
The popular 5/1 adjustable-rate mortgage rate ticked upward to 3.75 percent this week, a rise of 2 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 popular 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 $424,100 in the Chicago area.|
|30-year fixed||15-year fixed||5-year ARM||30-year jumbo|
|This week’s rate:||4.11%||3.50%||3.75%||3.94%|
|Change from last week:||+0.01||+0.03||+0.02||N/C|
|Change from last week:||+$0.96||+$2.43||+$1.87||N/C|
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.”