Multiple key mortgage rates slid down in the Denver area this week.

Key 30-year rate shows decline in Denver

The average rate on the benchmark 30-year fixed-rate mortgage rate for the Denver area dropped to 4.06 percent, according to Bankrate’s national survey of large lenders. The local rate sat below the national average rate of 4.09 percent, and was down 13 basis points from last week. A basis point is one-hundredth of 1 percentage point.

In this week’s survey, the mortgages had an average of 0.19 discount and origination points.

The drop in the 30-year fixed is cause for celebration among those who waited to lock on a rate, as that turned out to be a smart bet.

Monthly payments on a hypothetical $165,000 mortgage slid to $793.45, decreasing $12.36 from last week, corresponding with the decline in mortgage rates.

No clear direction for other Denver mortgage types

The average rate for 30-year jumbo mortgages fell this week, down 5 basis points to 4.08 percent. Jumbo mortgages are used for loan amounts above limits set by the Federal Housing Finance Agency; for the Denver area, that limit is $493,350.

The average rate for 15-year fixed-rate mortgages grew 2 basis points, reaching 3.58 percent. Monthly payments on a hypothetical $165,000, 15-year fixed-rate mortgage moved higher with rates, rising $1.63 to $1,186.05.

Because the 15-year fixed is a popular mortgage for homeowners who want to refinance, the increase means that a refi is less lucrative than it would have been before the rate rise.

The popular 5/1 adjustable-rate mortgage rate dropped 13 basis points this week, down to 3.75 percent. The most common type of variable-rate mortgage, 5/1 ARMs allow homeowners to pay a fixed rate for the first 5 years, and the rate adjusts once per year every year after.

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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 $493,350 in the Denver area.
30-year fixed 15-year fixed 5-year ARM 30-year jumbo
This week’s rate: 4.06% 3.58% 3.75% 4.08%
Change from last week: -0.13 +0.02 -0.13 -0.05
Monthly payment: $793.45 $1,186.05 $764.14 $2,378.14
Change from last week: -$12.36 +$1.63 -$12.12 -$14.27

Methodology: The “ 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 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.”