April 26, 2018

FHFA: Index Shows Mortgage Rates Increased in March 2018

Nationally, interest rates on conventional purchase-money mortgages increased from February to March, 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 4.49 percent for loans closed in late March, up 21 basis points from 4.28 percent in February.

The average interest rate on all mortgage loans was 4.42 percent, up 18 basis points from 4.24 in February.

The average interest rate on conventional, 30-year, fixed-rate mortgages of $453,100 or less was 4.54 percent, up 18 basis points from 4.36 in February.

The effective interest rate on all mortgage loans was 4.50 percent in March, up 16 basis points from 4.34 in February. 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 $317,300 in March, up $5,400 from $311,900 in February.

FHFA will release April index values Tuesday, May 29, 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 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 berepresentative.  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.  March 2018 values are based on 4,177 reported loans from 16 lenders, which include savings associations, mortgage companies, commercial banks, and mutual savings banks.

This post was originally published here.