In particular, FHFA reported that in August 2009 the contract rate on all mortgage loans (including both fixed- and adjustable-rate mortgages) declined from 5.25% in July 2009 to 5.23% percent in August.

The average interest rate on conventional 30-year, fixed-rate, mortgage loans of $417,000 or less decreased by 1 basis point to 5.30%.

However, the average interest rate on 15-year, fixed-rate loans of $417,000 or less increased by 3 basis points to 4.92%.

Note that the rates reported by MIRS reflect purchase-money mortgages that closed during August 25-31. Since the interest rate is typically determined 30 to 45 days prior to loan closing, the reported rates reflect market conditions that prevailed in mid- to late-July.

The effective interest rate (that is, the rate that reflects the amortization of initial fees and charges) decreased also by 2 basis points to 5.33% in August.

The percent of "no-point" mortgage loans increased from 42% in July to 44% in August while the average loan-to-price ratio decreased slightly from 74.9% in July to 74.6% percent in August.

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