FHFA Reports: Interest Rates Drop in October

Nationally, interest rates on conventional purchase-money mortgages decreased from September to October, according to several indices of new mortgage contracts. The National Average Contract Mortgage Rate for the Purchase of Previously Occupied Homes by Combined Lenders Index was 3.89 percent for loans closed in late October, down four basis points from 3.93 percent in September.  

The average interest rate on all mortgage loans was 3.90 percent, down five basis points from 3.95 in September.

The average interest rate on conventional, 30-year, fixed-rate mortgages of $417,000 or less was 4.12 percent, down 5 basis points from 4.17 in September.

The effective interest rate on all mortgage loans was 4.04 percent in October, down six basis points from 4.10 percent in September.  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 $308,600 in October, up $900 from $307,700 in September.