Mortgage rates in Chicago
A number of closely-watched mortgage rates advanced 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 advanced to 4.13 percent, according to Bankrate s national survey of large lenders. Not only did the local rate increase 7 basis points from last week, but it was above 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 0.30 discount and origination points.
With the 30-year fixed rising, it means that homebuyers and refinancers will find their borrowing costs have grown.
The increase in the mortgage rate elevated 30-year fixed-rate monthly payments on a hypothetical $165,000 mortgage to $800.15, an uptick of $6.73 from last week.
No clear direction for other Chicago mortgage types
Breaking ranks with the 30-year conventional mortgage, the average rate for 30-year jumbo mortgages remained unchanged this week, remaining at 3.91 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 climbed 3 basis points, up to 3.42 percent. Monthly payments on a hypothetical $165,000, 15-year fixed-rate mortgage ticked up along with rates, ticking up $2.42 to $1,173.08.
Because the 15-year fixed is a popular mortgage for homeowners who want to refinance, the increase means that a refi is less beneficial than it would have been before the rate rise.
The popular 5/1 adjustable-rate mortgage rate climbed to 3.69 percent this week, a rise of 3 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 popular variety of variable-rate mortgage.