Mortgage interest rates increased slightly in January, rising 0.11% compared to December, according to the Federal Finance Housing Agency (FHFA), conservator of government-sponsored enterprises Fannie Mae and Freddie Mac.
The average rate, based on closings, was 4.37% for the month, according to the report.
The contract rate on the composite of all mortgage loans was 4.36%, up 11 basis points from 4.25% in December.
The FHFA points out that interest rates are typically locked in 30-45 days before a loan is closed. Consequently, January data reflect market rates from mid-to-late December.
The effective interest rate – which accounts for the addition of initial fees and charges over the life of the mortgage – was 4.52%, up 12 basis points from 4.40% in December.
The average interest rate on a conventional, 30-year, fixed-rate mortgage of $417,000 or less was 4.67% in January – an increase of 13 basis points.
The average loan amount for all loans in January was $284,400, up $6,800 from December, when it was $277,600.