WASHINGTON (6/26/09)--In its most recent report, the Federal Housing Finance Agency (FHFA) said that interest rates on conventional 30-year mortgages below the conforming limit of $417,000 increased slightly in May, rising to an average of 4.88 percent. Conventional 15-year mortgages decreased by 4 basis points over the same time period, resulting in an average interest rate of 4.71 percent. Contract rates on all mortgages fell by 1 basis point during May, for a total of 4.87 percent. The effective interest rate fell by a similar margin, dropping to 4.95 percent. The FHFA also recorded a reduced loan-to-price ratio average of 74.2 percent. That average stood at 75.1 percent at the end of the previous month. However, the average amount of mortgage loans increased by just over $4,000, for a total of $221,000 during May, with those loans being purchased for an average term of 28.3 years. Initial fees and charges made up 0.58 percent of the balances of those loans, and 44 percent of so-called “purchase-money mortgage loans” that were originated in May were “no-point” mortgages, the FHFA said.