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How Did Mortgage Rates Perform?

Mortgage RatesMortgage rates on conventional purchase-money mortgages increased in April 2018 from the month earlier according to the Federal Housing Finance Agency’s (FHFA’s) latest report card on mortgage rate performance that was released on Tuesday.

The monthly report provides information on interest rates, loan terms, and house prices by property type by loan type, and by lender type. It also provides information on the adjustable rate mortgage (ARM), 15-year, and 30-year fixed rate loans. 

The report indicated that the National Average Contract Mortgage Rate for the Purchase of Previously Occupied Homes by Combined Lenders Index was 4.51 percent for loans closed in later April, rising by two basis points from 4.49 percent in March. The average rate on all mortgage loans also increased by seven basis points from 4.42 percent in March to 4.49 percent in April.

For conventional, 30-year fixed rates mortgages of $453,000 or less, the report said that average interest rates increased 10 basis points to 4.64 percent from 4.54 percent. The interest rates for 30-year fixed rate mortgages have seen a steady increase throughout April and May and rose to their highest level in seven years recently.

The report indicated that the effective interest rate on all mortgage loans also rose in April by 13 basis points to 4.63 percent. The rate recorded in March was 4.50 percent.

The rising rates also affected borrowers taking home loans with the average loan amount for all loans slipping by $4,400 to $312,900 in April against $317,300 recorded in March 2018.

The monthly data is based on a survey of mortgage lenders by FHFA, asking them to report terms and conditions of all conventional, single-family, fully amortized purchase-money loans closed during the last five working days of the month. The survey does not include mortgages guaranteed or insured by either the Federal Housing Administration or the U.S. Department of Veterans Affairs. It also excludes refinancing loans and balloon loans.

About Author: Radhika Ojha

Radhika Ojha is an independent writer and editor. A former Online Editor and currently a reporter for MReport, she is a graduate of the University of Pune, India, where she received her B.A. in Commerce with a concentration in Accounting and Marketing and an M.A. in Mass Communication. Upon completion of her master’s degree, Ojha worked at a national English daily publication in India (The Indian Express) where she was a staff writer in the cultural and arts features section. Ojha also worked as Principal Correspondent at HT Media Ltd and at Honeywell as an executive in corporate communications. She and her husband currently reside in Houston, Texas.

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