The average mortgage rate for the purchase of an existing home by combined lenders fell from 4.18% in January to 4.08% in February, according to a new report from the Federal Housing Finance Agency.
The lower interest rates reflect activity on loans closed during the Feb. 23 to Feb. 29 period. Typically, an interest rate is set 30 to 45 days before a loan is actually closed.
FHFA says the average interest rate on a conventional, 30-year FRM loan fell 5 basis points to 4.36% in February.
The contract rate on all mortgage loans, fixed and adjustable, hit 4.05% in February, down 9 basis points from 4.14% in January.
"Thirty-one percent of the purchase-money mortgage loans originated in February were no-point mortgages, down 3% from the unweighted share in January," the FHFA said. "The average term was 28.8 years in February, up 0.1% years from an unweighted 28.7 years in January. The average loan-to- price ratio in February was 75.3%, down 0.4 from 75.7%, unweighted, in January. The average loan amount was $244,300 in February, up $7,300 from an unweighted $237,000 in January."