Nationally, interest rates on mortgages showed little change from June to July, 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 4.09 percent for loans closed in late July, up one basis point from 4.08 percent in June. The index is calculated using FHFA's Monthly Interest Rate Survey. For June and July, the contract rate on the composite of all mortgage loans was 4.09 percent.
Interest rates are typically locked in 30-45 days before a loan is closed. Consequently, the July index reflects market rates from mid- to late-June. The effective interest rate was 4.25 percent in July, up 1 basis point from 4.24 percent in June. The effective interest rate accounts for the addition of initial fees and charges over the life of the mortgage.
For June and July, FHFA's interest rate survey shows the average interest rate on conventional, 30-year, fixed-rate mortgages of either $417,000 or less was 4.34 percent. The average loan amount for all loans was $287,800 in July, down $4,400 from $292,200 in June.