FHFA Reports Spike in July Interest Rates

National data from the ""Federal Housing Finance Agency"":http://www.fhfa.gov/ (FHFA) shows mortgage interest rates rising nearly half a percentage point from June to July.

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According to FHFA's index, which is based on new mortgage contracts, the contract interest rate on the composite of all mortgage loans was 4.00 percent, up 45 basis points from 3.55 percent in June. The effective interest rate (accounting for initial fees and charges over the life of the mortgage) was 4.12 percent, up from 3.67 percent.

Because interest rates are typically locked in 30-45 days before a loan is closed, July's data reflects market rates from mid- to late-June.
For a conventional, 30-year fixed-rate mortgage (of $417,000 or less), the average interest rate was 4.27 percent in July, an increase of 51 basis points.

The National Average Contract Mortgage Rate for the Purchase of Previously Occupied Homes by Combined Lenders was 4.01 percent for loans closed late June.

Meanwhile, the average loan amount fell, dropping $4,200 to $278,200 in July, FHFA reported.