Nationally, interest rates on conventional purchase-money mortgages decreased from April to May, according to the Federal Housing Finance Agency (FHFA).
The National Average Contract Mortgage Rate for the Purchase of Previously Occupied Homes by Combined Lenders Index was 3.87% for loans closed in late May – down 10 basis points from 3.97% in April.
The FHFA says the average interest rate on all mortgage loans was 3.90%, down eight basis points from 3.98% in April.
The average interest rate on conventional, 30-year, fixed-rate mortgages of $424,100 or less was 3.97%, down seven basis points from 4.04% in April.
The effective interest rate on all mortgage loans was 4.02% in May, which is down eight basis points from 4.10% in April. According to the FHFA, 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 $315,500 in May – up $3,900 from $311,600 in April, the FHFA adds.