WASHINGTON (8/30/13)--The Federal Housing Finance Agency (FHFA) reported Thursday that mortgage interest rates rose sharply in July over the previous month's rates.
Continuing an upward trend, the contract rate on the composite of all mortgage loans was 4%, up from 3.55% in June.
Interest rates are typically locked in 30-45 days before a loan is closed. Consequently, FHFA July data reflect market rates from mid-to-late June. The effective interest rate was 4.12%, up 45 basis points (bp) from 3.67% in June. The effective interest rate accounts for the addition of initial fees and charges over the life of the mortgage.
FHFA's interest rate survey shows the average interest rate on conventional, 30-year, fixed-rate mortgages of $417,000 or less was 4.27% in July, an increase of 51 bps. The average loan amount for all loans was $278,200 in July down $4,200 from $282,400 in June.
FHFA will release August index values Sept. 26.
Use the resource link to find the complete contract rate series.