Mortgage interest rates for conventional purchases fell to an average of about 4% in November, down 11 basis points compared to October to reach their lowest level in more than a year, according to a recent report from the Federal Housing Finance Agency (FHFA), conservator of government-sponsored enterprises Fannie Mae and Freddie Mac.
The report, which is based on several indices, shows that the average rate on all mortgage loans was 4.01%, down 10 basis points from 4.11% in October.
The average rate on a conventional, 30-year, fixed-rate mortgage (FRM) of $417,000 or less was 4.24%, a decrease of eight basis points from 4.32% in October.
The effective interest rate on all mortgage loans in November was 4.16%, down 11 basis points from 4.27% in October. The effective rate includes initial fees and charges over the life of the mortgage.
The average loan amount for all loans in November was $293,600, up $8,600 from $285,000 in October.
Rates, however, could be on their way back up in 2015: According to Freddie Mac's Primary Mortgage Market Survey for the week ended Dec. 31, the average rate for a 30-year FRM was 3.87%, up from 3.83% the previous week. A year ago at this time, the 30-year FRM averaged around 4.53%.
All rates are based on closings. For more, click here.