Mortgage rate trends are very important as they affect home sales. According to the latest results of the Monthly Interest Rate Survey (MIRS) of purchase-money mortgages, published by the Federal Housing Finance Agency (FHFA), US mortgage rates increased in June 2009.
In particular, the FHFA reported that the average interest rate on conventional 30-year, fixed-rate, mortgage loans of $417,000 or less jumped to 5.12 percent in June, representing a 24 basis points increase over the rate reported in the previous month.
The average interest rate on 15-year, fixed-rate loans of $417,000 or less increased to 4.80 percent in June representing an increase of 9 basis points over the respective rate reported in May 2009.
The results reported by the latest MIRSreflect loans closed during the June 24-30 period. As such they reflect mortgage rate trends that were prevailing in mid- to late-May, since the interest rate is typically determined 30 to 45 days before the loan is closed.
According to FHFA, the contract rate on the composite of all mortgage loans that includes both fixed- and adjustable-rate loans, was 5.08 percent in June, representing a 21-basis-point increase from the rate reported in May. The effective interest
rate, which reflects the amortization of initial fees and charges, increased also 21 basis points from the rate reported in the previous month, to reach the level of 5.16 percent.
The average loan-to-price ratio increased slightly from 74.2 percent in May to 74.4 percent in June. The average loan amount increased also in June by 5.3% or $11,800 to $233,000.
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