A new report from the Federal Housing Finance Agency provides more evidence of the decline in mortgage interest rates, as several indices reviewed by the FHFA show that mortgage rates fell in July.
According to the FHFA’s report, the average interest rate on all mortgage loans closed in July was 3.63%, which is down seven basis points from 3.7% in June.
Additionally, the FHFA report showed that the average interest rate on conventional, 30-year, fixed-rate mortgages of $417,000 or less was 3.8% in July, down eight basis points from 3.88% in June.
The FHFA’s National Average Contract Mortgage Rate for the Purchase of Previously Occupied Homes by Combined Lenders Index also fell in July, hitting 3.62% for loans closed in late July, down seven basis points from 3.69% in June.
Additionally, the FHFA report showed that the effective interest rate on all mortgage loans, which accounts for the addition of initial fees and charges over the life of the mortgage, was as 3.77% in July, down six basis points from 3.83% in June.
The FHFA report also showed that the average loan amount for all loans actually fell from June, when it was $333,900, to $325,700 in July, down $8,200.
Click the image below to see a view of mortgage rates over the last few months, courtesy of the FHFA.