WASHINGTON (6/28/13)--U.S. contract mortgage interest rates fell from April to May--down 0.15%, according to an index of new mortgage contracts.
The National Average Contract Mortgage Rate for the Purchase of Previously Occupied Homes by Combined Lenders index was 3.4% for loans closed in late May, according to the Federal Housing Finance Agency (FHFA). The index is calculated using FHFA's Monthly Interest Rate Survey.
The contract rate on the composite of all mortgage loans was 3.4%, down 15 basis points from 3.55% in April.
Interest rates are typically locked in 30-45 days before a loan is closed. Therefore, May data reflect market rates from mid- to late-April. The effective interest rate was 3.57%, down 12 basis points from 3.69% in April. This 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 3.58% in May, a decrease of 19 basis points. The average loan amount was $280,600--up $14,100 from $266,500 in April.