FHFA Reports October Mortgage Rates Fell While Fees Increased
The Federal Housing Finance Agency on Thursday reported that mortgage rates on purchased homes fell by 11 basis points in October to 3.44%.
The effective interest rate, which reflects the amortization of initial fees and charges, was 3.57% in October, down 10 basis points from September.
Both figures represent a composite rate of all mortgages, the FHFA said in a release, including both fixed and adjustable rates.
Breaking rates down by loan category, the average interest rate on conventional, 30-year, fixed-rate mortgage loans decreased 14 basis points to 3.62% in September. The survey reported loans closed during Oct. 25 - 31, the FHFA said, and typically such rates are determined 30 to 45 days before the loan is closed.
The agency reported no data on adjustable-rate mortgages due to insufficient sample size.
Lenders reported that fees were 1.05% of the loan balance in October, up 10 basis points
from September. Twenty-one percent of the purchase-money mortgage loans originated in September was "no-point" mortgages, down 1% from September.
The average term was 27.5 years in October, up slightly from the previous month. The average loan-to-value ratio was 75.8% in October, up 0.2% from September. Average loan amounts increased $2,800 to $257,400 during that period.
The data excludes FHA-insured and VA-guaranteed mortgages, refinancing loans, and