National data show interest rates on mortgages are stable at low levels. Contract mortgage interest rates increased slightly in April—up 0.02 percent from March, 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 3.56 percent for loans closed in late April. The index is calculated using FHFA’s Monthly Interest Rate Survey.
Interest rates are typically locked in 30-45 days be fore a loan is closed, so the April 24-30 data reflects market rates from mid-to-late March. Although the contract rate increased only 0.02 percent, the effective interest rate was 3.69 percent in April, up 4 basis points from 3.65 percent in March. 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 3.77 in April, an increase of 3 basis points. The average loan
amount was $266,500 in April up $3,100 from $263,400 in March.