FHFA Index Shows Mortgage Interest Rates Increased in January

The average interest rate on all mortgage loans was 3.97 percent, up 1 basis point from 3.96 in December.

Washington, D.C. – February 25, 2016 – Nationally, interest rates on conventional purchase-money mortgages increased from December to January, 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 3.98 percent for loans closed in late January, up 1 basis point from 3.97 percent in December.  

The average interest rate on all mortgage loans was 3.97 percent, up 1 basis point from 3.96 in December.

The average interest rate on conventional, 30-year, fixed-rate mortgages of $417,000 or less was 4.23 percent, up 3 basis points from 4.20 in December.

The effective interest rate on all mortgage loans was 4.10 percent in January, unchanged from December.  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 $310,400 in January, down $7,600 from $318,000 in December.

FHFA will release February index values Tuesday, March 29, 2016.