Mortgage rates diverged in the Phoenix area this week.
Key 30-year rate rises in Phoenix
According to Bankrate’s national survey of large lenders, the average rate on the benchmark 30-year fixed-rate mortgage rate for the Phoenix area climbed to 4.08 percent. While the local rate was up 4 basis points from last week, it was lower than the national average rate of 4.09 percent. A basis point is one-hundredth of 1 percentage point.
For mortgages in this week’s survey, there were an average of 0.16 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 punched up 30-year fixed-rate monthly payments on a hypothetical $165,000 mortgage to $795.36, an increase of $3.83 from last week.
No clear direction for other Phoenix mortgage types
Conversely, the average rate for 30-year jumbo mortgages fell this week, giving up 5 basis points to 4.33 percent. Jumbo mortgages are used for loan amounts above limits set by the Federal Housing Finance Agency; for the Phoenix area, that limit is $424,100.
The average rate for 15-year fixed-rate mortgages stayed put, remaining at 3.60 percent. Monthly payments on a hypothetical $165,000 15-year fixed-rate mortgage held, staying at $1,187.68.
The 15-year fixed is a popular mortgage for homeowners who want to refinance. Rates remaining the same won’t help or hurt for refinancers thinking about locking soon.
The popular 5/1 adjustable-rate mortgage rate remained at 4.04 percent this week. The most common variety 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.
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 Phoenix area.|
|30-year fixed||15-year fixed||5-year ARM||30-year jumbo|
|This week’s rate:||4.08%||3.60%||4.04%||4.33%|
|Change from last week:||+0.04||N/C||N/C||-0.05|
|Change from last week:||+$3.83||N/C||N/C||-$12.46|
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.”