Washington, D.C. – Nationally, interest rates on conventional purchase-money mortgages decreased slightly from August to September, according to several indices of new mortgage contracts.
The National Average Contract Mortgage Rate for the Purchase of Previously Occupied Homes by Combined Lenders index was 4.06 percent for loans closed in late September, down 2 basis points from 4.08 percent in August.
The average interest rate on all mortgage loans was 4.07 percent, down 2 basis points from 4.09 in August.
The average interest rate on conventional, 30-year, fixed-rate mortgages of $417,000 or less was 4.31 percent, a decrease of 2 basis points from 4.33 in August.
The effective interest rate on all mortgage loans was 4.22 percent in September, down 2 basis points from 4.24 percent in August. The effective interest rate accounts for the addition of initial fees and charges over the life of the mortgage.
The average loan amount for all loans was $281,000 in September, down $6,100 from $287,100 in August.
FHFA will release October index values Tuesday, November 25, 2014.
For more information, call David Roderer at (202) 649-3206. To hear recorded index information, call (202) 649-3993. To find the complete contract rate series, go to www.fhfa.gov/Default.aspx?Page=251.
Technical note: The index is based on a small monthly survey of mortgage lenders, which may not be representative. The sample is not a statistical sample but is rather a convenience sample. Survey respondents were asked to report terms and conditions of all conventional, single-family, fully amortized purchase-money loans closed during the last five working days of the month. The index does not include mortgages either guaranteed or insured by either the Federal Housing Administration or the U.S. Department of Veterans Affairs. The index also excluded refinancing loans and balloon loans. August 2014 values are based on 5,635 reported loans from 24 lenders, which include savings associations, mortgage companies, commercial banks, and mutual savings banks. The effective interest rate includes the amortization of initial fees and charges over a 10-year period (the historical assumption of the average life of a mortgage loan).
Contacts:
Stefanie Johnson (202) 649-3030 / Corinne Russell (202) 649-3032