National data shows interest rates on mortgages increased in January.  Contract mortgage interest rates increased 0.11 percent from December to January, according to an index of new mortgage contracts.

According to the Federal Housing Finance Agency (FHFA), the National Average Contract Mortgage Rate for the Purchase of Previously Occupied Homes by Combined Lenders index was 4.37 percent for loans closed in late January. The index is calculated using FHFA’s Monthly Interest Rate Survey. The contract rate on the composite of all mortgage loans was 4.36 percent, up 11 basis points from 4.25 in December.

Interest rates are typically locked in 30-45 days before a loan is closed. Consequently, January data reflect market rates from mid-to-late December. The effective interest rate was 4.52 percent, up 12 basis points from 4.40 percent in December. The effective interest rate accounts for the addition of initial fees and charges over the life of the mortgage.

FHFA’s interest rate survey shows the average interest rate on conventional, 30-year, fixed-rate mortgages of $417,000 or less was 4.67 in January, an increase of 13 basis points. The average loan amount for all loans was $284,400 in January up $6,800 from $277,600 in December.