The average interest rates for conventional 30-year fixed rate mortgages moved from 4.58 percent in October to 4.48 percent in November according to the Federal Housing Finance Agency’s (FHFA) Monthly Interest Rate Survey, a decrease of ten basis points.
The decrease in November follows October’s decline of five basis points and was the second consecutive month that interest rates have declined after increasing for the previous five months.
The results of the survey reflect loans closed during the last five working days of November from 22 lenders and data from 4,565 mortgage loans. Since mortgage loans typically take 30-45 days to close, the reported rates reflect market conditions in mid to late October.
The National Average Contract Mortgage Rate for the Purchase of Previously Occupied Homes by Combined Lenders, used to index some ARM contracts, fell to 4.21 percent from 4.32 percent in October.
The effective mortgage interest rate, which includes initial fees and charges over the first ten years of a mortgage loan also decreased, falling to 4.38 percent from 4.49 percent in October.
The average loan amount for a 30-year fixed rate mortgage was $264,900 in November, down from $269,000 in October, a decline of 1.5 percent.
Tags: FHFA, mortgage interest rates, purchase money mortgages, initial fees and charges, points, mortgage loan, ARM, no-points mortgage
Reported by Jeff Alan