The contract interest rate on the composite of all fixed and adjustable-rate mortgages declined to 3.78% in May, down roughly 15 basis points from 3.93% in April, the Federal Housing Finance Agency said Tuesday.

Meanwhile, the effective interest rate reflecting the amortization of initial fees and charges hit 3.91% for the month.

The average interest rate for a 30-year, fixed-rate mortgage also declined 17 basis points to 4.04% in May.

Interest rate results for May generally stem from loans closed within that month. However, the interest rates for those closings are generally determined 30 to 45 days before the mortgage is closed.

Initial loan fees and charges made up 1.03% of the loan balance in May, an increase from 13 basis points in April.

Of the loans originated in May, 13% were no-point mortgages. The average loan term was 27.7 years in May, compared to 27.3 in April, while the average loan-to-price ratio in May hit 76.4%, up 1.1% from 75.3% in April.

The average loan amount in May hit $263,200, up $7,000 from $256,200 in April.