Washington — The Federal Housing Finance Agency today reported that the average interest rate on conventional 30-year, fixed-rate, mortgage loans of $417,000 or less decreased 4 basis points to 5.05 percent in December. The average interest rate on 15- year, fixed-rate loans of $417,000 or less decreased 9 basis points to 4.54 percent in December. These rates are calculated from the FHFA’s Monthly Interest Rate Survey of purchase-money mortgages. These results reflect loans closed during the December 24-31 period. Typically, the interest rate is determined 30 to 45 days before the loan is closed. Thus, the reported rates depict market conditions prevailing in mid- to late November.
The contract rate on the composite of all mortgage loans (fixed- and adjustable-rate) was 4.92 percent in December, down 8 basis points from 5.00 percent in November. The effective interest rate, which reflects the amortization of initial fees and charges, was 5.01 percent in December, down 8 basis points from 5.09 percent in November. [http://www.fhfa.gov/webfiles/15378/January%20MIRS%20Jan%202010%20final.pdf]
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