FHFA: Interest Rates Fall, Loan Amounts Rise in May

Interest rates declined 0.15 percent in May, according to the ""Federal Housing Finance Agency"":http://www.fhfa.gov/ (FHFA), which observes ""interest rates"":http://www.fhfa.gov/webfiles/25332/MIRS_Jun_2013_Final.pdf on a composite of mortgage loans written for fixed- and adjustable-rate mortgages for previously-occupied, single-family homes.

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The average interest rate for mortgage loans closed in May was 3.4 percent, a 15-basis point decline from April, when the average rate was 3.55 percent, according to ""FHFA data."":http://www.fhfa.gov/Default.aspx?Page=251

At the same time, the average loan amount for a conventional, 30-year, fixed-rate mortgage increased $14,100 to $280,600.

The effective rate, which is calculated to reflect loan interest rates plus initial fees and charges, was 3.57 percent for the month of May, reflecting a 12-basis point decline from 3.69 percent in April.

The average interest rate for conventional, 30-year, fixed-rate loans written in May was 3.58 percent, down 19 basis points from April, according to FHFA.