The average interest rate on conventional 30-year, fixed-rate mortgages remained at 5.12% during May, according to the Federal Housing Finance Agency (FHFA).
The average interest rate on 15-year, fixed-rate loans of $417,000 increased six basis points (bp) to 4.58% in May. These rates are calculated from FHFA’s Monthly Interest Rate Survey of purchase-money mortgages and reflect loans closed from May 24 to 31.
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-April.
The contract rate on the composite of all mortgages (fixed- and adjustable-rate) was 4.99% in May, down three bp from 5.02 percent in April. The effective interest rate, which reflects the amortization of initial fees and charges, was 5.10% in May, down 2 bp from 5.12% in April.
This report contains no data on adjustable-rate mortgages due to insufficient sample size.