FHFA: Interest Rates Slip in September

The National Average Contract Mortgage Rate for the Purchase of Previously Occupied Homes by Combined Lenders index was 4.06 percent for loans closed in late September, down two basis points from 4.08 percent in August. The average interest rate on all mortgage loans was 4.07 percent, down 2 basis points from 4.09 in August.

The average interest rate on conventional, 30-year, fixed-rate mortgages of $417,000 or less was 4.31 percent, a decrease of two basis points from 4.33 in August.

The effective interest rate on all mortgage loans was 4.22 percent in September, down two basis points from 4.24 percent in August. 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 $281,000 in September, down $6,100 from $287,100 in August.