December 29, 2011 (Jeff Alan)
The average interest rates for conventional 30-year fixed rate mortgages increased from 4.36 percent in October to 4.40 percent in November according to the Federal Housing Finance Agency’s (FHFA) Monthly Interest Rate Survey.
The results of the survey reflect loans closed during the November 23-30 period from 26 lenders and data from 3,265 mortgage loans. Since mortgage loans typically take 30-45 to close, the reported rates reflect market conditions in mid to late October.
The average interest rate of all mortgage loans, fixed and adjustable-rate, was 4.20 percent in November, up from 4.17 percent in October.
The effective mortgage interest rate, including initial fees and charges, increased slightly in November to 4.31 percent from 4.29 percent in October.
Thirty-four percent of all purchase-money mortgage loans were no-point loans, up from 28 percent in October. The six percentage point difference was the largest swing in no-point loans in eight months. In the previous seven months, the monthly difference in no-point loan levels had stayed within a consistent two percentage point range.
Initial fees and charges averaged 0.78 percent of the loan balance in November, down from 0.83 percent in October.
The average loan amount increased to $220,500 in November from $218,500 in October, with the average loan-to-price ratio declining from 78.4 percent in October to 77.1 percent in November.
The National Average Contract Mortgage Rate for the Purchase of Previously Occupied Home by Combined Lenders, used to index some ARM contracts, increased from 4.19 percent in October to 4.22 percent in November.
Tags: FHFA, mortgage interest rates, purchase money mortgages, initial fees and charges, points, mortgage loan, ARM, no-points mortgage