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Going Down, Still . . .

The Federal Housing Finance Agency (FHFA) has conducted its monthly interest rate survey for October 2017 values based on 4,519 reported loans from 20 lenders.

The interest rates from September to October for 30-year fixed rates for homes costing less than $424,100 decreased by 3 basis points from 4.14 percent to 4.11 percent.

Factoring in other types of mortgages other than a 30-year fixed, the average interest rate on all mortgages showed a decrease of 2 basis points to 3.97 percent from a previous 3.99 percent.

The National Average Contract Mortgage Rate for Previously Occupied Homes Index, which calculates interest rates on homes with at least one previous owner, dropped to 3.98 percent for loans closed in late October, compared to 4 percent in September.

Similarly, the average effective interest rate on all loans also declined—resulting in a 7 basis point drop from 4.08 percent to 4.01 percent, which is good news for homeowners but less fortunate for lenders.

However, the average loan amount for all loans experienced an increase at $307,500 in October, which is up $8,000 from $299,500 in September.

It’s worth noting that all reports, with the exception of the specified 30-year fixed, can include 15-year mortgages and adjustable-rate mortgages. The survey, however, does not include mortgages that were refinanced from another mortgage or balloon mortgages. Nor does it include mortgages that are insured or guaranteed by the Federal Housing Administration or the United States Department of Veteran Affairs, multi-family loans, or loans on mobile homes.

While the FHFA does not name the 20 lenders surveyed for the report specifically, it does specify that they include an array of commercial banks, mortgage companies, savings associations, and mutual savings banks.

November’s index values will be released on Thursday, December 28. You can find previous month's’ index reports here.

About Author: Nicole Casperson

Nicole Casperson is the Associate Editor of DS News and MReport. She graduated from Texas Tech University where she received her M.A. in Mass Communications and her B.A. in Journalism. Casperson previously worked as a graduate teaching instructor at Texas Tech's College of Media and Communications. To contact Casperson, e-mail: [email protected].
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