The Federal Housing Finance Agency (FHFA) has reported that the national average contract mortgage rate for the purchase of previously occupied homes by combined lenders – which is used as an index in some adjustable-rate mortgage (ARM) contracts, was 4.65% based on loans closed in August. This is a decrease of 0.13% from the previous month.
The FHFA also reported that the average interest rate on conventional, 30-year, fixed-rate mortgage loans of $417,000 or less decreased 14 basis points (bps) to 4.7% in August, while the average interest rate on 15-year, fixed-rate loans of $417,000 decreased 20 bps to 4.46% in August.
The contract rate on the composite of all mortgage loans (fixed- and adjustable-rate) was 4.63% in August, down 14 bps from 4.77% in July. The effective interest rate, which reflects the amortization of initial fees and charges, was 4.74% in August, down 16 bps from 4.9% in July. This report contains no data on ARM mortgages due to insufficient sample size.