March 27, 2018

FHFA: Index Shows Mortgage Rates Increased in February 2018

Nationally, interest rates on conventional purchase-money mortgages increased from January to February, according to several indices of new mortgage contracts.

The National Average Contract Mortgage Rate for the Purchase of Previously Occupied Homes by Combined Lenders Index was 4.28 percent for loans closed in late February, up 16 basis points from 4.12 percent in January.

The average interest rate on all mortgage loans was 4.24 percent, up 14 basis points from 4.10 in January.

The average interest rate on conventional, 30-year, fixed-rate mortgages of $453,100 or less was 4.36 percent, up 17 basis points from 4.19 in January.

The effective interest rate on all mortgage loans was 4.34 percent in February, up 18 basis points from 4.16 in January. The effective interest rate accounts for the addition of initial fees and charges over the life of the mortgage.

The average loan amount for all loans was $311,900 in February, up $13,500 from $298,400 in January.

FHFA will release March index values Thursday, April 26, 2018.

For more information, call David Roderer at (202) 649-3206. To hear recorded index information, call (202)649-3993. To find the complete contract rate series, go to https://www.fhfa.gov/DataTools/Downloads/Pages/Monthly-Interest-Rate-Data.aspx.

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Technical note: The indices are based on a small monthly survey of mortgage lenders, which may not be representative.  The sample is not a statistical sample but is rather a convenience sample.  Survey respondents were asked to report terms and conditions of all conventional, single-family, fully amortized purchase-money loans closed during the last five working days of the month.  Unless otherwise specified, the indices include 15-year mortgages and adjustable-rate mortgages.  The indices do not include mortgages guaranteed or insured by either the Federal Housing Administration or the U.S. Department of Veterans Affairs.  The indices also exclude refinancing loans and balloon loans.  February 2018 values are based on 3,257 reported loans from 13 lenders, which include savings associations, mortgage companies, commercial banks, and mutual savings banks.

This post was originally published here.