Mortgage rates are on the rise across the board, according to the latest Mortgage Rate Index released by the Federal Housing Finance Agency on Friday. The Index includes data on previously occupied home loans, convention loans, adjustable-rate mortgages, and all mortgage loans in general.
According to the Index, the mortgage rate on previously occupied home purchases jumped 13 basis points between May and June, rising from 3.90 percent to 4.00 percent over the month. Rates on conventional, 30-year, fixed-rate mortgages for $424,100 or less also rose, ticking up 18 basis points—from 3.97 percent to 4.15 percent—for the same period.
Overall, the average interest rate on all loans rose 10 basis points, going from 3.90 percent in May to 4.00 percent in June. The effective interest rate on all loans, which takes into account initial fees and total charges over the entire life of a mortgage loan, rose nine basis points from 4.02 percent to 4.11 percent.
Rates on adjustable rate mortgages rose in June, jumping from 3.87 percent to 4.00 percent. Despite the uptick, ARM rates are still significantly lower than earlier this year; in January, they hit 4.27 percent, their highest point in the last year. The lowest point for ARM rates in the last 12 months was 3.61 percent, reached in October 2016.
The average loan amount also increased between May and June, rising $3,400. Loans averaged $315,500 in May and $318,900 in June.
The FHFA releases its Mortgage Rate Index on a monthly basis. It includes data gathered from a sample of mortgage lenders during the last five business days of the month. It does not include FHA- or VA-backed loan data or data on multifamily properties.
The next Index will be released on August 29. To view the full data set, visit FHFA.gov. [1]