Contract mortgage interest rates inched up 0.03% in December, compared to November, according to the Federal Housing Finance Agency (FHFA).
The average rate for all loans closed in late December, regardless of type, was 4.25%, up three basis points from 4.22% in November, the agency reports.
The FHFA notes that interest rates are typically locked in 30-45 days before a loan is closed. Consequently, December data reflect market rates from mid-to-late November.
The effective interest rate, which accounts for the addition of initial fees and charges over the life of the mortgage, was 4.40%, up two basis points from 4.38% in November.
The average interest rate on a conventional, 30-year, fixed-rate mortgage of $417,000 or less was 4.54% in December – an increase of six basis points compared to November.
The average loan amount for all loans was $277,600 in December, up $12,700 from $264,900 in November.
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