FHFA Reports Average Mortgage Rate Hits 4.08 Percent in February – NMP Skip to main content

FHFA Reports Average Mortgage Rate Hits 4.08 Percent in February

NationalMortgageProfessional.com
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.
Published
Mar 27, 2012
Manufactured Housing: The New Affordable Alternative

While the housing market is grappling with widespread affordability and supply, manufactured homes are gaining ground as a new alternative. 

Industry News
Dec 03, 2021
Angel Oak Home Loans Opens 3 New Branches

Continues expansion in Western U.S. with new branches in California, Nevada & Utah.

Industry News
Dec 02, 2021
Open Mortgage Names New President

Joe Stephenson, formerly of American Advisors Group, to lead daily operations.

Industry News
Dec 01, 2021
Homepoint Expands Refinance Program Offerings

Now offers Freddie Mac’s new refinance option, Refi Possible, making it easier for many homeowners with a Freddie Mac-owned mortgage to reduce their interest rate.

Industry News
Nov 30, 2021
Non-QM Lender Deephaven Hires Business Development VP

Dallas-based Tim Fisher charged with growing Deephaven’s correspondent business In Texas and surrounding states

Industry News
Nov 30, 2021
Biden Reappoints Powell As Federal Reserve Chairman

A signal that The Fed will continue its policies as inflation surges and economic uncertainty spikes due to an emerging variant of the coronavirus. 

Industry News
Nov 29, 2021