FHFA: Average Mortgage Loan Rates Tumble in May

June 27, 2012 (Jeff Alan)

The average interest rates for conventional 30-year fixed rate single-family, fully amortized, purchase-money mortgages fell from 4.21 percent in April to 4.04 percent in May according to the Federal Housing Finance Agency’s (FHFA) Monthly Interest Rate Survey.

The results of the survey reflect loans closed during the May 25-31 period from 22 lenders and data from 5,372 mortgage loans. Since mortgage loans typically take 30-45 to close, the reported rates reflect market conditions in mid to late April.

The average interest rate of all mortgage loans, fixed and adjustable-rate, was 3.78 percent in May, down from 3.93 percent in April.

The effective mortgage interest rate, including initial fees and charges, fell to 3.91 percent from 4.03 percent in April.

Thirteen percent of all purchase-money mortgage loans were no-point loans, down from 20 percent in April, while initial fees and charges averaged 1.03 percent of the loan balance in May, up from 0.90 percent in April.

The average loan amount increased to $263,200 in May from $256,200 in April, with the average loan-to-price ratio increasing from 75.3 percent in April to 76.4 percent in May.

The National Average Contract Mortgage Rate for the Purchase of Previously Occupied Home by Combined Lenders, used to index some ARM contracts, fell from 3.93 percent in April to 3.78 percent in May.

Tags: FHFA, mortgage interest rates, purchase money mortgages, initial fees and charges, points, mortgage loan, ARM, no-points mortgage

Source:
FHFA