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News Release
FHFA Reports Mortgage Interest Rates, February 2013

immediate release
03/28/2013

Washington, D.C. – The Federal Housing Finance Agency (FHFA) today reported that the National Average Contract Mortgage Rate for the Purchase of Previously Occupied Homes by Combined Lenders, used as an index in some adjustable-rate mortgage (ARM) contracts, was 3.43 percent based on loans closed in February. There was an increase of 0.08 from the previous month. The complete contract rate series can be found at www.fhfa.gov/data/mirs.

National Average Contract Mortgage Rate Graph: February 2012 - February 2013 

Source: FHFA

The average interest rate on conventional, 30-year, fixed-rate mortgage loans of $417,000 or less increased 9 basis points to 3.62 in February. These rates are calculated from the FHFA’s Monthly Interest Rate Survey of purchase-money mortgages (see technical note). These results reflect loans closed during the February 22–28 period. Typically, the interest rate is determined 30 to 45 days before the loan is closed. Thus, the reported rates depict market conditions prevailing in mid- to late-January.

The contract rate on the composite of all mortgage loans (fixed- and adjustable-rate) was 3.42 percent in February, up 8 basis points from 3.34 percent in January. The effective interest rate, which reflects the amortization of initial fees and charges, was 3.55 percent in February, up 9 basis points from 3.46 percent in January.

This report contains no data on adjustable-rate mortgages due to insufficient sample size.

Initial fees and charges were 0.99 percent of the loan balance in February, down 4 basis points from January. Twenty percent of the purchase-money mortgage loans originated in February were "no-point" mortgages, up from 26 percent in January. The average term was 27.1 years in February, unchanged from January. The average loan-to-price ratio in February was 77.2 percent, up 0.8 percent from 76.4 percent in January. The average loan amount was $258,700 in February up $4,000 from $254,700 in January.

Recorded information on this index is available by calling (202) 649-3993. For technical questions on this index, please call David Roderer at (202) 649-3206. The March index value will be announced on April 25, 2013.

Technical note: The data are based on a small monthly survey of mortgage lenders which may not be representative. Survey respondents are asked to report the terms and conditions on all conventional, single-family, fully amortized, purchase-money loans closed during the last five working days of the month. The sample is not a statistical sample but is rather a convenience sample. The data exclude FHA-insured and VA-guaranteed mortgages, refinancing loans, and balloon loans. This month’s data are based on 5,215 reported loans from 25 lenders, which may 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, which is the historical assumption of the average life of a mortgage loan.

​Corinne Russell (202) 649-3032 / Stefanie Johnson (202) 649-3030