FHFA Reports Mortgage Interest Rates for February

The ""Federal Housing Finance Agency"":http://www.fhfa.gov/ (FHFA) reported an increase in its measure of average mortgage interest rates for February.

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The agency's rate calculations are based on its Monthly Interest Rate Survey of purchase-money mortgages. They reflect loans closed during the period of February 22-28 and depict market conditions prevailing in mid- to late-January.

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According to FHFA, the average interest rate on a conventional, 30-year fixed-rate loan (with a conforming balance) was 3.62 percent in February, an increase of 9 basis points over January. The average rate on the composite of all mortgages (both fixed- and adjustable-rate) was 3.42 percent, up 8 basis points from 3.34 percent the previous month.

The effective interest rate, which reflects the amortization of initial fees and charges, was 3.55 percent, up 9 basis points from 3.46 percent in January.

Meanwhile, the National Average Contract Mortgage Rate for the Purchase of Previously Occupied Homes by Combined Lenders--a metric used as an index in some adjustable-rate mortgage contracts--was 3.43 percent, up 8 basis points. The report contains no specific data on adjustable-rate mortgages due to insufficient sample size.

The average loan term in February was 27.1 years, flat from January. The average loan-to-price ratio was 77.2 percent, up 0.8 percent, and the average loan amount was $258,700, up from $254,700 previously.