The Federal Housing Finance Agency 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 ARM contracts, was 4.42 percent based on
loans closed in November. This is a decrease of 0.07 percent from the previous month.
The average interest rate on conventional, 30-year fixed-rate mortgage loans of $417,000 or less decreased 12 basis points to 4.38 percent in November. These rates are calculated from the FHFA’s Monthly Interest Rate Survey (MIRS) of purchase-money mortgages. These results reflect loans closed during the Nov. 23-30 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-October.
The contract rate on the composite of all mortgage loans (fixed- and adjustable-rate) was 4.35 percent in November, down 9 basis points from 4.44 percent in October. The effective interest rate, which reflects the amortization of initial fees and charges, was 4.46 percent in November, down 11 basis points from 4.57 percent in October. This report contains no data on adjustable-rate mortgages due to insufficient sample size.
Initial fees and charges were 0.80 percent of the loan balance in November, down 0.07 percent from 0.87 in October. Twenty-eight percent of the purchase-money mortgage loans originated in November were “no-point” mortgages, down from 33 percent in October. The average term was 28.1 years in November, up 0.1 years from 28.0 years in October. The average loan-to-price ratio in November was 74.8 percent, up 2.6 percent from 72.2 percent in October. The average loan amount was $214,800 in November, down $200 from $215,000 in October.