The average interest rates for conventional 30-year fixed rate single-family, fully amortized, purchase-money mortgages climbed from 3.53 percent in January to 3.62 percent in February according to the Federal Housing Finance Agency’s (FHFA) Monthly Interest Rate Survey.
The results of the survey reflect loans closed during the February 22-28 period from 25 lenders and data from 5,215 mortgage loans. Since mortgage loans typically take 30-45 to close, the reported rates reflect market conditions in mid to late January.
The average interest rate of all mortgage loans, fixed and adjustable-rate, was 3.42 percent in February, up from 3.34 percent in January.
The effective mortgage interest rate, including initial fees and charges, increased to 3.55 percent from 3.46 percent in January.
Twenty-six percent of all purchase-money mortgage loans were no-point loans, unchanged from January, while initial fees and charges averaged 0.99 percent of the loan balance in February, up from 0.95 percent in January.
The average loan amount was $258,700 in February, up from $254,700 in January, with the average loan-to-price ratio increasing from 76.4 percent in January to 77.2 percent in February.
The National Average Contract Mortgage Rate for the Purchase of Previously Occupied Home by Combined Lenders, used to index some ARM contracts, increased to 3.43 percent from 3.35 percent in January.
Tags: FHFA, mortgage interest rates, purchase money mortgages, initial fees and charges, points, mortgage loan, ARM, no-points mortgage
Reported by Jeff Alan