WASHINGTON (1/31/11)--Conventional 30-year mortgages averaged an interest rate of 4.61% during December, a 23-basis point increase over November’s average, the Federal Home Finance Agency (FHFA) reported last week. Overall, the combined average contract mortgage rate for fixed and adjustable mortgages was 4.52% during that same time period. The effective interest rate, which reflects the amortization of initial fees and charges, was 4.63%, according to the FHFA. The FHFA reported that the average loan amount for loans that closed in December was $209,500, a drop from the previous month’s average of $214,800. Initial fees and charges represented 0.8% of the balance of those loans, and the average term of loans originated in December was 28.4 years. The average loan-to-price ratio was 75.6% in December, an increase from the 74.8% loan-to-price ratio recorded at the end of November. For the full FHFA release, use the resource link.