FHFA: Rates Plateau in August

Nationally, interest rates on conventional purchase-money mortgages decreased slightly from July to August, according to several indices 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 August, down one basis point from 4.09 percent in July.  The average interest rate on all mortgage loans was 4.09 percent, reflecting no change from July. The average interest rate on conventional, 30-year, fixed-rate mortgages (FRMs) of $417,000 or less was 4.33 percent, a decrease of one basis point from 4.34 in July. The effective interest rate on all mortgage loans was 4.24 percent in August, down one basis point from 4.25 percent in July.  The effective interest rate accounts for the addition of initial fees and charges over the life of the mortgage. The average loan amount for all loans was $287,100 in August, down $700 from $287,800 in July.