WASHINGTON (10/28/09)—The average interest rate on conventional 30-year, fixed-rate, mortgage loans of $417,000 or less dropped by seven basis points in September, down to 5.23%, the Federal Housing Finance Agency (FHFA) reported yesterday. The rate for shorter-term loans--15-year, fixed-rate loans of $417,000 or less—averaged an increase of 15 basis points, up to 4.77%. In its Monthly Interest Rate Survey
for September , the FHFA also reported:
* The contract rate on the composite of all mortgage loans (fixed- and adjustable-rate) was 5.15%, which was down from 5.23% in August; and * The effective interest rate, reflecting the amortization of initial fees and charges, was 5.24%, a decrease of nine basis points from 5.33% the month before;
The average loan-to-price ratio was 74.5%, a slight drop from August when it was 74.6% , and the average loan amount decreased by $9,400 to $212,400 in September. Use the resource link below to read more.