The average interest rates for conventional 30-year fixed rate mortgages fell from 3.77 percent in April to 3.58 percent in May according to the Federal Housing Finance Agency’s (FHFA) Monthly Interest Rate Survey.
The results of the survey reflect loans closed during the May 27-31 period from 29 lenders and data from 7,529 mortgage loans. Since mortgage loans typically take 30-45 to close, the reported rates reflect market conditions in mid to late April.
The National Average Contract Mortgage Rate for the Purchase of Previously Occupied Homes by Combined Lenders, used to index some ARM contracts, declined to 3.40 percent from 3.55 percent in April.
The effective mortgage interest rate, which includes initial fees and charges over the first ten years of a mortgage loan also declined, falling to 3.57 percent from 3.69 percent in April.
The average loan amount for a 30-year fixed rate mortgage was $280,600 in May, up from $266,500 in April, an increase of 5.3 percent.
Tags: FHFA, mortgage interest rates, purchase money mortgages, initial fees and charges, points, mortgage loan, ARM, no-points mortgage
Reported by Jeff Alan