The average interest rates for conventional 30-year fixed rate mortgages moved from 4.49 percent in August to 4.63 percent in September according to the Federal Housing Finance Agency’s (FHFA) Monthly Interest Rate Survey, an increase of 14 basis points.
The increase in September follows August’s increase of 22 basis points.
The results of the survey reflect loans closed during the September 26-30 period from 27 lenders and data from 6,951 mortgage loans. Since mortgage loans typically take 30-45 days to close, the reported rates reflect market conditions in mid to late August.
The National Average Contract Mortgage Rate for the Purchase of Previously Occupied Homes by Combined Lenders, used to index some ARM contracts, increased to 4.36 percent from 4.25 percent in August.
The effective mortgage interest rate, which includes initial fees and charges over the first ten years of a mortgage loan also increased, climbing to 4.51 percent from 4.40 percent in August.
The average loan amount for a 30-year fixed rate mortgage was $270,100 in September, down from $274,500 in August, a decline of 1.6 percent.
Tags: FHFA, mortgage interest rates, purchase money mortgages, initial fees and charges, points, mortgage loan, ARM, no-points mortgage
Reported by Jeff Alan