The average rate on 30-year fixed-rate mortgages fell two basis points, the 15-year fixed rate dropped one basis point, and the 5/1 ARM was unchanged, according to a NerdWallet survey of daily mortgage rates published by national lenders Tuesday.
The 30-year fixed-rate mortgage is three basis points lower than one week ago and 27 basis points lower than one year ago. A basis point is one one-hundredth of one percent.
A change is coming to mortgages at the beginning of 2018: Maximum amounts for government-backed loans will rise. In much of the United States, the maximum loan size for a mortgage guaranteed by Fannie Mae or Freddie Mac will climb to $453,100 in 2018, up from the limit of $424,100 in 2017. (A mortgage for more than this “conforming limit” is deemed a jumbo loan, and cannot be backed by Fannie or Freddie.)
There are numerous exceptions, though, for high-cost housing markets. In the most expensive markets in the continental United States, such as San Francisco, Los Angeles and Brooklyn, New York, the 2018 conforming limit will be $679,650, up from $636,150 in 2017.
A few metro areas are expensive, but not at the stratospheric level of San Francisco. Those cities have limits between the base conforming limit and the maximum. Seattle is one example. The limit in Seattle will be $667,000 in 2018. And limits will be $679,650 or higher in Alaska, Hawaii, Guam and the U.S. Virgin Islands.
MORTGAGE RATES TODAY, TUESDAY, NOV. 28:
NerdWallet daily mortgage rates are an average of the published annual percentage rate with the lowest points for each loan term offered by a sampling of major national lenders. APR quotes reflect an interest rate plus points, fees and other expenses, providing the most accurate view of the costs a borrower might pay.