July 27, 2011 (Jeff Alan)
Mortgage interest rates declined from 4.92 percent in May to 4.79 percent in June according to the Federal Housing Finance Agency’s (FHFA) Monthly Interest Rate Survey of purchase-money mortgages.
The results of the survey reflect loans closed during the June 24-30 period from 31 lenders and data from 6008 mortgage loans. Since mortgage loans typically take 30-45 to close, the reported rates reflect market conditions in mid to late May.
The average interest rate of all mortgage loans, fixed and adjustable-rate, was 4.61 percent in June, down from 4.75 percent in May.
The effective mortgage interest rate, including initial fees and charges, was 4.74 percent in June, down from 4.87 percent in May.
Purchase-money mortgage loans that were originated without points remained popular, with 28 percent of all mortgages being no-point loans. It was the third straight month that no-point purchase-money mortgage loans remained at that level.
Initial fees and charges averaged 0.94 percent of the loan balance in June, up from 0.85 percent in May.
The average loan amount declined in June to $219,000 from $222,900 in May, with the average loan-to-price ratio declining from 76.4 percent in May to 76.3 percent in June.
The National Average Contract Mortgage Rate for the Purchase of Previously Occupied Home by Combined Lenders, used to index some ARM contracts, decreased from 4.74 percent in May to 4.62 percent in June.
Tags: FHFA, mortgage interest rates, purchase money mortgages, initial fees and charges, points, mortgage loan, ARM, no-points mortgage