WASHINGTON (1/30/13)--U.S. mortgage interest rates dipped slightly in December to 3.29%, the Federal Housing Finance Agency reported Tuesday.
That National Average Contract Mortgage Rate for the Purchase of Previously Occupied Homes by Combined Lenders, used as an index in some adjustable-rate mortgage contracts, was based on loans closed in December. There was a decrease of 0.07% from November, FHFA said.
That rate has consistently gone down, for the most part, during the past year from a high of 4.25% on Feb. 28, 2012, according to FHFA's complete contract rate series.
The average interest rate on conventional, 30-year, fixed-rate mortgage loans of $417,000 or less decreased seven basis points to 3.47 in December. Those rates are calculated from the FHFA's Monthly Interest Rate Survey of purchase-money mortgages. The results reflect loans closed during the Dec. 24-31 period. Typically, the interest rate is determined 30 to 45 days before the loan is closed, so the reported rates depict market conditions prevailing in mid- to late-November, FHFA said.
The contract rate on the composite of all mortgage loans--fixed- and adjustable-rate--was 3.28% in December, down eight basis points from 3.36% in November. The effective interest rate, which reflects the amortization of initial fees and charges, was 3.42% in December, down seven basis points from 3.49% in November.
The report contains no data on adjustable-rate mortgages due to insufficient sample size.
To view the report, use the link.