FHFA Index Shows Mortgage Interest Rates Increase in October

Nationally, interest rates on conventional purchase-money mortgages increased from September to October, according to several indices of new mortgage contracts.

Palm Coast, FL – November 25, 2014 – Nationally, interest rates on conventional purchase-money mortgages increased from September to October, according to several indices of new mortgage contracts. 

The National Average Contract Mortgage Rate for the Purchase of Previously Occupied Homes by Combined Lenders index was 4.11 percent for loans closed in late October, up 5 basis points from 4.06 percent in September.  

The average interest rate on all mortgage loans was 4.11 percent, up 4 basis points from 4.07 in September.

The average interest rate on conventional, 30-year, fixed-rate mortgages of $417,000 or less was 4.31 percent, a decrease of 2 basis points from 4.33 in September.

The effective interest rate on all mortgage loans was 4.27 percent in October, up 5 basis points from 4.22 percent in September.  The effective interest rate accounts for the addition of initial fees and charges over the life of the mortgage.

The average loan amount for all loans was $285,000 in October, up $4,000 from $281,000 in September.

Source: FHFA