WASHINGTON (11/27/13)--Average mortgage interest rates and loan amounts both fell in October, the Federal Housing Finance Agency (FHFA) reported.
The FHFA said the average interest rate on conventional, 30-year, fixed-rate mortgages of $417,000 or less was 4.58% in October, a five basis point decrease from the previous month's total. The effective interest rate, which accounts for the addition of initial fees and charges over the life of the mortgage, was 4.49% in October. This is a two basis point reduction from the 4.51% rate recorded in September, FHFA said.
The decline interrupts what had been an "upward trend," the FHFA noted.
The National Average Contract Mortgage Rate for the Purchase of Previously Occupied Homes by Combined Lenders, used as an index in some adjustable-rate mortgage contracts, was down to 4.32%. That was a slight decrease of four basis points from the previous month.
The average loan amount for all loans was $269,000 in October, down $1,100 from $270,100 in August, the agency added.