Home/Mortgages, Rates/FHFA Mortgage Rates Rise in January

The average interest rates for conventional 30-year fixed rate single-family, fully amortized, purchase-money mortgages climbed from 3.47 percent in December to 3.53 percent in January according to the Federal Housing Finance Agency’s (FHFA) Monthly Interest Rate Survey.

The results of the survey reflect loans closed during the January 25-31 period from 25 lenders and data from 4,729 mortgage loans. Since mortgage loans typically take 30-45 to close, the reported rates reflect market conditions in mid to late December.

The average interest rate of all mortgage loans, fixed and adjustable-rate, was 3.34 percent in January, up from 3.28 percent in December.

The effective mortgage interest rate, including initial fees and charges, increased to 3.46 percent from 3.42 percent in December.

Twenty-six percent of all purchase-money mortgage loans were no-point loans, up from 15 percent in December, while initial fees and charges averaged 0.95 percent of the loan balance in January, down from 1.15 percent in December.

The average loan amount was $254,700 in January, up from $274,100 in December, with the average loan-to-price ratio increasing slightly from 76.3 percent in December to 76.4 percent in January.

The National Average Contract Mortgage Rate for the Purchase of Previously Occupied Home by Combined Lenders, used to index some ARM contracts, increased to 3.35 percent from 3.29 percent in December.

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


Reported by Jeff Alan