Mortgage rates saw a steady rise in May according to the latest monthly mortgage data published by the Federal Housing Finance Agency [1] (FHFA) on Tuesday, with average interest rates on all mortgage loans rising six basis points to 4.55 percent from 4.49 percent in April.
The survey [2] provides monthly information on interest rates, loan terms, and house prices by property type (all, new, previously occupied), by loan type (fixed- or adjustable-rate), and by lender type. It also provides information on 15-year and 30-year fixed-rate loans as well as Adjustable Rate Mortgages (ARMs). Additionally, the survey provides quarterly information on conventional loans by major metropolitan area and by Federal Home Loan Bank district.
The data indicated that nationally, interest rates on conventional purchase-money mortgages increased from April to May, led by the national average contract mortgage rate for the purchase of previously occupied homes by combined lender index closing six basis points up to 4.57 percent for loans closed in May, from 4.51 percent in April.
For conventional loans with 30-year fixed-rate mortgages of $453,100 or less, the average interest rates rose seven basis points to 4.71 percent from 4.64 percent in April, while the effective interest rate on all mortgage loans was 4.66 percent in May up three basis points from 4.63 percent in April. According to the FHFA, the effective interest rate accounts for the addition if initial fees and charges over the life of the mortgage.
The effect of rising home prices was evident in the loan amounts taken in May. According to the FHFA, the average loan amount for all loans was $322,100, up $9,200 from $312,900 in April 2018.