The average interest rate for a 30-year, fixed-rate mortgage fell 7 basis points in May, hitting 4.92%, down from 4.99% in April, the Federal Housing Finance Agency said Tuesday. The agency bases its average rates on mortgage purchases of $417,000 or less. In addition, the FHFA found the national contract mortgage rate on the purchase of all previously occupied homes – a measure used in ARM contracts – fell 0.06% to 4.74% last month when compared to April. The results from FHFA are based on rates from loans that closed in the period stretching from May 25 to May 31. The contract rate on the composite of all mortgage loans during that period hit 4.75%, down 5-basis points from 4.80% in April. The effective interest rate during the same period, which includes the amoritization of initial fees and charges, also fell to 4.87, compared to 4.93% in April. In May, 28% of purchase-money mortgages were "no-point" mortgages and the average term was 27.9 years, up slightly from 27.8 years in April. Write to: Kerri Panchuk.