Mortgage interest rates for conventional purchase loans rose from December 2016 to January 2017, with the National Average Contract Mortgage Rates for the Purchase of Previously Occupied Homes by Combined Lenders Index at 4.22 percent—a 22-point increase, the Federal Housing Finance Agency (FHFA) recently reported. The average rate for a conventional 30-year fixed-rate mortgage totaling $ 424,100 or less was 4.37 percent, a 29-point increase. The average amount across loan types, excluding balloon and refinance loans, was $ 305,400, a decline from $ 319,100 in December.
The effective interest rate, however—which includes initial fees and charges over the life of the loan—was 4.30 percent, a 31-point increase.
These data are based on 3,290 loans from commercial banks, mortgage companies, mutual savings banks and savings associations, and exclude loans guaranteed or insured by the Federal Housing Administration (FHA) or the U.S. Department of Veterans Affairs (VA).