Federal Housing Finance Agency Reports Mortgage Interest

Bill Hitchcock

Federal Housing Finance Agency Reports Mortgage Interest
Washington, DC – The Federal Housing Finance Agency today reported that the average interest rate on conventional 30-year, fixed-rate, mortgage loans of $417,000 or less increased 19 basis points to 5.31 percent in July. The average interest rate on 15-year, fixed-rate loans of $417,000 or less increased 9 basis points to 4.89 percent in June. These rates are calculated from the FHFA’s Monthly Interest Rate Survey (MIRS) of purchase money mortgages. These results reflect loans closed during the July 27-31 period.

Typically, the interest rate is determined 30 to 45 days before the loan is closed. Thus, the reported rates depict market conditions prevailing in mid- to late-June.

The contract rate on the composite of all mortgage loans (fixed- and adjustable-rate) was 5.25 percent in July, up 17 basis points from 5.08 percent in June. The effective interest rate, which reflects the amortization of initial fees and charges, was 5.35 percent in July, up
19 basis points from 5.16 percent in June.

This report contains no data on adjustable-rate mortgages due to insufficient sample size. Initial fees and charges were 0.67 percent of the loan balance in July, up 0.09 percent from June. Forty-two percent of the purchase-money mortgage loans originated in July were
“no-point” mortgages, down from 45 percent in June. The average term was 28.4 years in July, down 0.1 years from 28.5 years in June. The average loan-to-price ratio in July was 74.9 percent, up from 74.4 percent in June. The average loan amount decreased by $5,700
to $227,300 in July.

The National Average Contract Mortgage Rate for the Purchase of Previously Occupied Homes by Combined Lenders, used as an index in some ARM contracts, was 5.26 percent based on loans closed in July. This is an increase of 0.17 percent from the previous month.

This Contract rate series can be found at www.fhfa.gov.


Author’s Yougler Profile is at  Bill Hitchcock.

Leave a Reply

You must be logged in to post a comment.

Flickr Photos

Boracay Island New Zealand Philippines ftmonroe ftmonroe-5 ftmonroe-3

Featured Video

Animated Tag Cloud