Skip to main content

FHFA Reports Average Mortgage Rate Hits 4.08 Percent in February

Mar 27, 2012

The Federal Housing Finance Agency (FHFA) has reported that the National Average Contract Mortgage Rate for the Purchase of Previously Occupied Homes by Combined Lenders, used as an index in some adjustable-rate mortgage (ARM) contracts, was 4.08 percent based on loans closed in February. Beginning this month, FHFA is calculating interest rates using unweighted survey data. For January, a comparable rate based on unweighted data would have been 4.18 percent. Thus, there was a decrease of 0.10 percent from the previous month’s corresponding unweighted rate. The average interest rate on conventional, 30-year, fixed-rate mortgages (FRMs) of $417,000  or less decreased five basis points to 4.36 percent from January’s figure based on unweighted data. These rates are calculated from the FHFA’s Monthly Interest Rate Survey of purchase-money mortgages. These results reflect loans closed during the Feb. 23-29 period. Typically, the interest rate is determined 30 to 45 days before the loan is closed. Thus, the reported rates depict market conditions prevailing in mid- to late-January. The contract rate on the composite of all mortgage loans (fixed- and adjustable-rate) was 4.05 percent in February, down nine basis points from 4.14 percent, based on unweighted data, in January. The effective interest rate, which reflects the amortization of initial fees and charges, was 4.17 percent in February, down 10 basis points from 4.27 percent, based on unweighted data, in January. This report contains no data on ARMs due to insufficient sample size. Initial fees and charges were 0.93 percent of the loan balance in February, up 0.04 percent from 0.89, based on unweighted data, in January. Thirty-one percent of the purchase money mortgage loans originated in February were "no-point" mortgages, down three percent from the unweighted share in January. The average term was 28.8 years in February, up 0.1 years from an unweighted 28.7 years in January. The average loan-to-price ratio in February was 75.3 percent, down 0.4 percent from 75.7 percent, unweighted, in January. The average loan amount was $244,300 in February, up $7,300 from an unweighted $237,000 in January.
About the author
Published
Mar 27, 2012
HUD Freezes Foreclosures On FHA Mortgages In Texas Flood Zone

Kerr County homeowners among hardest hit in disaster that’s claimed more than 100 lives

Jul 09, 2025
Fewer Canadians Hunt For U.S. Property

Largest component of international buyers in U.S. takes more than 25% hit

Jul 08, 2025
Fannie, Freddie Now Allow Lenders To Use VantageScore 4.0

Lenders will keep tri-merge credit scoring model; what this shift means

Fairway Independent Mortgage Corporation Announces Rebranding

Now Fairway Home Mortgage, company also donates $1M to support relief efforts in deadly Texas flooding

Jul 07, 2025
FHFA Chief Officially Calls For Investigation Of Federal Reserve Chairman Powell

Alleges Powell lied in testimony to Congress regarding Fed building renovations, says Fed Chair should be fired

BBB Will Impact Homeowners, Buyers

U.S. House and Senate must agree on certain tax, mortgage insurance premium deductions