Monthly fixed rate mortgages slip below 5%: FHFA
The average interest rate on a conventional 30-year, fixed-rate mortgage fell 7 basis points to 4.99% in April, according to a new report from the Federal Housing Finance Agency. The conventional, 30-year FRM applies to loans valued at $417,000 or less, according to the federal agency. The contract rate when looking at a composite of all fixed and adjustable-rate mortgages fell 4 basis points to 4.8% in April, compared to 4.84% in March. Earlier Wednesday, the Mortgage Bankers Association said the average interest rate for a 30-year, fixed home loan rose to 4.69% last week from 4.6% a week prior. Last fall, mortgage interest rates for a traditional, 30-year mortgage dipped below 4% while the 15-year, fixed rate fell to about 3.64%. In April, the average mortgage loan outstanding amount fell by $4,200, hitting $204,400. During the month, initial fees and charges represented 0.88% of the loan balance, which is down 0.07% from 0.95% in February. The latest data applies to rates on loans closed between April 25 and April 29. Since interest rates are generally determined 30 to 45 days before a mortgage is closed, the most recent report is reflective of prevailing market conditions in mid to late-March, FHFA said. Write to: Kerri Panchuk.