The average interest rates for conventional 30-year fixed rate mortgages jumped from 3.76 percent in June to 4.27 percent in July according to the Federal Housing Finance Agency’s (FHFA) Monthly Interest Rate Survey, an increase of 51 basis points.
The results of the survey reflect loans closed during the July 27-31 period from 30 lenders and data from 7,444 mortgage loans. Since mortgage loans typically take 30-45 days to close, the reported rates reflect market conditions in mid to late June.
The National Average Contract Mortgage Rate for the Purchase of Previously Occupied Homes by Combined Lenders, used to index some ARM contracts, increased to 4.00 percent from 3.55 percent in June.
The effective mortgage interest rate, which includes initial fees and charges over the first ten years of a mortgage loan also increased, climbing to 4.12 percent from 3.67 percent in June.
The average loan amount for a 30-year fixed rate mortgage was $278,200 in July, down from $282,400 in June, 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