Mortgage Interest on the Decline for Second Straight Month

first_img May 30, 2017 1,400 Views  Print This Post Servicers Navigate the Post-Pandemic World 2 days ago Related Articles The Federal Housing Finance Agency (FHFA) has conducted its monthly interest rate survey for 4,437 loans closed during the last five business days in April across 17 lenders, and has reported a decline by over 10 basis points across in all mortgage interest rates. Interest rates have been falling since February 2017.The largest drop in interest rates from March to April was to 30-year fixed rates for homes costing less than $424,100, which fell 20 basis points from 4.24 percent to 4.04 percent. Factoring in other types of mortgages other than a 30-year fixed, the average interest rate on all mortgages showed the smallest drop, down 14 basis to 3.98 percent from a previous 4.12 percent.The National Average Contract Mortgage Rate for Previously Occupied Homes Index, which calculates interest rates on homes with at least one previous owner, dropped to 3.97 percent from 4.12 percent (15 basis points), and is currently the lowest interest rate reported by the institutions surveyed. Similarly, the average effective interest rate on all loans also declined 15 basis points from 4.25 percent to 4.10 percent, which is good news for homeowners but less fortunate for lenders.In keeping with April’s trend, the average loan amount also fell slightly from $312,700 to $311,600, a nominal difference of $1,100 in comparison to March’s $11,100 mean increase.It’s worth noting that all reports, with the exception of the specified 30-year fixed, can include 15-year mortgages and adjustable-rate mortgages. The survey, however, does not include mortgages that were refinanced from another mortgage or balloon mortgages. Nor does it include mortgages that are insured or guaranteed by the Federal Housing Administration or the United States Department of Veteran Affairs, multi-family loans, or loans on mobile homes.While the FHFA does not name the 17 lenders surveyed for the report specifically, it does specify that they include an array of commercial banks, mortgage companies, savings associations, and mutual savings banks.May’s index values will be released on Thursday, June 29. You can find previous months’ index reports here. Sign up for DS News Daily Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Demand Propels Home Prices Upward 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago The Best Markets For Residential Property Investors 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Previous: Appraisal Software Now a New Mobile Application Next: Carson: The Right Mindset Can Overcome Mortgage Interest on the Decline for Second Straight Month The Best Markets For Residential Property Investors 2 days ago Home / Daily Dose / Mortgage Interest on the Decline for Second Straight Month in Daily Dose, Featured, Government, News Subscribe Demand Propels Home Prices Upward 2 days ago Tagged with: FHFA Mortgage Interest Rates Share Save FHFA Mortgage Interest Rates 2017-05-30 Staff Writer About Author: Staff Writerlast_img

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