A number of benchmark mortgage rates cruised higher in the Los Angeles area this week.
Benchmark 30-year rate up in Los Angeles
The average rate on the benchmark 30-year fixed-rate mortgage rate for the Los Angeles area increased to 4.16 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 3 basis points from last week. A basis point is one-hundredth of 1 percentage point.
The average mortgage in our survey this week had 0.19 discount and origination points.
With the 30-year fixed rising, it means that homebuyers and refinancers will find their borrowing costs have increased.
The increase in the mortgage rate elevated 30-year fixed-rate monthly payments on a hypothetical $165,000 mortgage to $803.03, a difference of $2.88 from last week.
Other Los Angeles mortgage types mixed
On the other hand, the average rate for 30-year jumbo mortgages didn’t move this week, remaining at 4.19 percent. Jumbo mortgages are used for loan amounts above limits set by the Federal Housing Finance Agency; for the Los Angeles area, that limit is $636,150.
The average rate for 15-year fixed-rate mortgages held steady as well, remaining at 3.56 percent. Monthly payments on a hypothetical $165,000 15-year fixed-rate mortgage held, staying at $1,184.42.
The 15-year fixed is a popular mortgage for homeowners who want to refinance. Rates standing still is neither good news nor bad news for refinancers thinking about locking soon.
The popular 5/1 adjustable-rate mortgage rate climbed 3 basis points this week, ratcheting up to 4.00 percent. The most common type of variable-rate mortgage, 5/1 ARMs allow property owners to pay a fixed rate for the first 5 years, and the rate adjusts once per year every year after.
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 $636,150 in the Los Angeles area.|
|30-year fixed||15-year fixed||5-year ARM||30-year jumbo|
|This week’s rate:||4.16%||3.56%||4.00%||4.19%|
|Change from last week:||+0.03||N/C||+0.03||N/C|
|Change from last week:||+$2.88||N/C||+$2.86||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.”