News Column

FHFA Index Shows Mortgage Interest Rates Continue to Decrease in June

July 31, 2014



WASHINGTON, July 31 -- Federal Housing Finance Agency issued the following news release:

Nationally, interest rates on mortgages decreased from May to June, according to an index of new mortgage contracts.

According to the Federal Housing Finance Agency (FHFA), the National Average Contract Mortgage Rate for the Purchase of Previously Occupied Homes by Combined Lenders index was 4.08 percent for loans closed in late June. The index is calculated using FHFA's Monthly Interest Rate Survey. The contract rate on the composite of all mortgage loans was 4.09 percent in June, a decrease from 4.13 percent in May.

Interest rates are typically locked in 30-45 days before a loan is closed. Consequently, the June index reflects market rates from mid-to-late May. The effective interest rate was 4.24 percent in June, down 4 basis points from 4.28 percent in May. 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 4.34 in June, a decrease of 3 basis points. The average loan amount for all loans was $292,200 in June, up $9,600 from $282,600 in May.

FHFA will release June index values Thursday, August 28th, 2014.

For more information, call David Roderer at (202) 649-3206. You can hear recorded index information by calling (202) 649-3993. You can find the complete contract rate series at http://www.fhfa.gov/DataTools/Downloads/Pages/Monthly-Interest-Rate-Data.aspx.

View graph here (http://www.fhfa.gov/Media/PublicAffairs/Pages/FHFA-Index-Shows-Mortgage-Interest-Rates-Continue-to-Decrease-in-June.aspx)

TNS 30BautistaJude 140801-4816140 30BautistaJude


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Source: Targeted News Service


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