Mortgage rates continued their climb in August, according to the ""Federal Housing Finance Agency"":http://www.fhfa.gov/ (FHFA). The agency ""reported"":http://www.fhfa.gov/webfiles/25523/MIRS_Sep_2013_final.pdf the average contract mortgage rate for a loan on existing homes at 4.26 percent at the end of August, an increase of 0.25 percent of 25 basis points from the previous month.
[IMAGE]The effective interest rate--which is always higher, as it adds on the impact of initial fees and charges--was 4.4 percent in FHFA's most recent survey, demonstrating a 28-basis point increase from 4.12 percent in July.
[COLUMN_BREAK]The average rate for a conventional, 30-year, fixed-rate mortgage loan up to $417,000 increased 22 basis points in August, reaching 4.49 percent.
The contract rate on a composite of all mortgage loans rose from 4 percent in July to 4.25 percent in August, according to FHFA.
As rates rose, average loan amounts fell. The average mortgage loan in August was $274,500--$3,700 less than the average loan amount in July, according to FHFA's survey.
As interest rates are usually determined 30 to 45 days before a loan closes, FHFA's August data actually reflects interest rates from a month earlier.
FHFA surveys lenders each month, asking them to report rates from the last five working days of the month. The data excludes loans insured by the Federal Housing Administration or the Department of Veterans Affairs as well as refinances and balloon loans.