The average interest rates for conventional 30-year fixed rate mortgages moved from 4.48 percent in November to 4.54 percent in December according to the Federal Housing Finance Agency’s (FHFA) Monthly Interest Rate Survey, an increase of six basis points.
The increase in December follows November’s decrease of ten basis points and was the first increase in FHFA mortgage interest rates in three months.
The results of the survey reflect loans closed during the last five working days of December from 20 lenders and data from 4,084 mortgage loans. Since mortgage loans typically take 30-45 days to close, the reported rates reflect market conditions in mid to late November.
The National Average Contract Mortgage Rate for the Purchase of Previously Occupied Homes by Combined Lenders, used to index some ARM contracts, increased to 4.25 percent in December from 4.22 percent in November.
The effective mortgage interest rate, which includes initial fees and charges over the first ten years of a mortgage loan also increased, rising to 4.40 percent from 4.38 percent in November.
The average loan amount for a 30-year fixed rate mortgage was $277,600 in December, up from $264,900 in November, an increase of 4.8 percent.
Tags: FHFA, mortgage interest rates, purchase money mortgages, initial fees and charges, points, mortgage loan, ARM, no-points mortgage
Reported by Jeff Alan