Contract Rate Falls to 2011 Low

Written by: Steve Cook   Wed, July 27, 2011 Beyond Today’s News, Recovery Signals

The National Average Contract Mortgage is 4.62 percent, lower than it has been all year. This is a decrease of 0.12 percent from the previous month. Many lenders use this rate in adjusting some adjustable-rate mortgages. This index was the only index rate that federally chartered savings and loan associations could use as an adjustable-rate mortgage index in the early 1980s. 

The average interest rate on conventional, 30-year, fixed-rate mortgage loans of $417,000 or less decreased 13 basis points to 4.79 percent in June. These results reflect loans closed during the June 24-30 period.  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-May.

The contract rate on the composite of all mortgage loans (fixed- and adjustable-rate) was 4.61 percent in June, down 14 basis points from 4.75 percent in May.  The effective interest rate, which reflects the amortization of initial fees and charges, was 4.74 percent in June, down 13 basis points from 4.87 percent in May. 

 

Announce Date Index Month Index Rate
July 27, 2011  June 2011  4.62 
June 28, 2011 May 2011  4.74 
May 25, 2011  April 2011  4.80 
April 26, 2011  March 2011  4.84 
March 29, 2011 February 2011  4.79 
February 24, 2011  January 2011  4.71 
January 27, 2011  December 2010  4.58 
December 28, 2010 November 2010 4.42
November 23, 2010 October 2010 4.49
October 28, 2010 September 2010 4.55
September 28, 2010 August 2010 4.65
August 26, 2010 July 2010 4.78
July 27, 2010 June 2010 4.91
June 24, 2010 May 2010 4.99

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