The national average contract mortgage rate for the purchase of previously occupied homes by combined lenders index was 4.18% for loans closed in late May, the Federal Housing Finance Agency said.

Meanwhile, the contract rate on the composite of all mortgage loans dropped to 4.14% from 4.23% in April.

This data reflects market rates from mid- to late- April. The effective interest rate was 4.28%, falling 10 basis points from 4.38% in April.  

The average interest rate on a conventional, 30-year, fixed-rate mortgage of $417,000 or less came in at 4.37% in May, a decrease of 16 basis points, while the average loan amount for all loans hit $282,600 in May, down $1,200 from $283,800 in April.