Interest rates for conventional purchase mortgages fell month-over-month in July, the Federal Housing Finance Agency reported.
The FHFA said Tuesday that the National Average Contract Mortgage Rate for the Purchase of Previously Occupied Homes by Combined Lenders Index dropped seven basis points from June to 3.62%. Similarly, the average interest rate on all mortgage loans fell seven basis points to 3.63%.
The FHFA also reported an eight-basis-point drop in the average interest rate on conventional, 30-year, fixed-rate mortgages of $417,000 or less to 3.8%. And the effective interest rate on all mortgage loans, which accounts for the addition of initial fees and charges over the life of the loan, was 3.77% in July, a decrease of six basis points from 3.83% in June.
Additionally, the FHFA said that the average amount for all loans was $325,700 in July, down $8,200 from $333,900 in June.
