Thursday, September 30, 2010

FHFA Reports Mortgage Interest Rates For August

The Federal Housing Finance Agency (FHFA) has reported that the national average contract mortgage rate for the purchase of previously occupied homes by combined lenders - which is used as an index in some adjustable-rate mortgage (ARM) contracts, was 4.65% based on loans closed in August. This is a decrease of 0.13% from the previous month.

The FHFA also reported that the average interest rate on conventional, 30-year, fixed-rate mortgage loans of $417,000 or less decreased 14 basis points (bps) to 4.7% in August, while the average interest rate on 15-year, fixed-rate loans of $417,000 decreased 20 bps to 4.46% in August.

The contract rate on the composite of all mortgage loans (fixed- and adjustable-rate) was 4.63% in August, down 14 bps from 4.77% in July. The effective interest rate, which reflects the amortization of initial fees and charges, was 4.74% in August, down 16 bps from 4.9% in July. This report contains no data on ARM mortgages due to insufficient sample size.