July 30, 2012 (Jeff Alan)
The average interest rates for conventional 30-year fixed rate single-family, fully amortized, purchase-money mortgages fell from 4.04 percent in May to 3.88 percent in June according to the Federal Housing Finance Agency’s (FHFA) Monthly Interest Rate Survey.
The results of the survey reflect loans closed during the June 25-30 period from 30 lenders and data from 5,584 mortgage loans. Since mortgage loans typically take 30-45 to close, the reported rates reflect market conditions in mid to late May.
The average interest rate of all mortgage loans, fixed and adjustable-rate, was 3.67 percent in June, down from 3.78 percent in May.
The effective mortgage interest rate, including initial fees and charges, fell to 3.81 percent from 3.91 percent in May.
Seventeen percent of all purchase-money mortgage loans were no-point loans, up from 13 percent in May, while initial fees and charges averaged 1.07 percent of the loan balance in June, up from 1.03 percent in May.
The average loan amount was $263,200 in June, unchanged May, with the average loan-to-price ratio decreasing from 76.4 percent in May to 75.6 percent in June.
The National Average Contract Mortgage Rate for the Purchase of Previously Occupied Home by Combined Lenders, used to index some ARM contracts, fell from 3.78 percent in May to 3.67 percent in June.
Tags: FHFA, mortgage interest rates, purchase money mortgages, initial fees and charges, points, mortgage loan, ARM, no-points mortgage