The average interest rate on conventional 30-year, fixed-rate mortgages remained at 5.12% during May, according to the Federal Housing Finance Agency (FHFA).
The average interest rate on 15-year, fixed-rate loans of $417,000 increased six basis points (bp) to 4.58% in May. These rates are calculated from FHFA’s Monthly Interest Rate Survey of purchase-money mortgages and reflect loans closed from May 24 to 31.
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-April.
The contract rate on the composite of all mortgages (fixed- and adjustable-rate) was 4.99% in May, down three bp from 5.02 percent in April. The effective interest rate, which reflects the amortization of initial fees and charges, was 5.10% in May, down 2 bp from 5.12% in April.
This report contains no data on adjustable-rate mortgages due to insufficient sample size.
- Initial fees and charges were 0.72 percent of the loan balance in May, up 0.09 percent from 0.63 in April.
- Forty-two percent of the purchase-money mortgages originated in May were “no-point” mortgages, down from 45% in April.
- The average term was 27.5 years in May, down from 27.6 years in April.
- The average loan-to-price ratio in May was 74.1%, down from 74.3% in April.
- The average loan amount was $218,600 in May, down $200 from $212,800 in April.