Having risen for the previous four months, mortgage interest rates stumbled in October, according to data from the ""Federal Housing Finance Agency"":http://www.fhfa.gov/Default.aspx (FHFA).[IMAGE] [COLUMN_BREAK]
Using data on more than 5,700 loans from 33 different lenders, ""FHFA calculated"":http://www.fhfa.gov/webfiles/25839/MIRS_NOV_2013_final.pdf a composite contract rate of 4.32 percent for loans closed in late October, a decline of 4 basis points from September.
The effective interest rate, which accounts for the addition of initial fees and charges over the life of the mortgage, was 4.49 percent, down from 4.51 percent.
The average interest rate for a 30-year fixed-rate mortgage with a conforming loan balance was 4.58 percent, a decrease of 5 basis points.
Because interest rates are typically locked in 30-45 days before a loan is closed, October's data reflect market rates from mid- to late September, FHFA said.
The average loan amount for all loans in October also retreated, falling $1,100 to $269,000, the agency reported.