The contract interest rate for the composite of all fixed and adjustable-rate mortgages hit 3.65% in July, down 2-basis points from 3.67% in June, the Federal Housing Finance Agency said Tuesday.  

Meanwhile, the average mortgage rate for the purchase of previously occupied homes, or the benchmark for ARMs, hit 3.66%.

Interest rates recorded in the FHFA study are generally determined 30-to-45 days before a loan closes, making the most recent data reflective of June market conditions.

The effective interest rate, which includes the amortization of initial fees and charges, hit 3.78% in July, down 3-basis points from 3.81% in June. 

The average loan term in July hit 27.5 years, while the average loan-to-value ratio reached 76.1%, up 0.5% from 75.6% in June.

During the same period, the average loan amount hovered at $258,900, compared to $263,200 in June.

When looking at all purchase-money mortgage loans, 20% were classified as no-point mortgages last month, up 3% from June.