Mortgage Rates Increase in October 2018
Nationally, interest rates on conventional purchase-money mortgages increased from September to October, according to several indices of new mortgage contracts.
The National Average Contract Mortgage Rate for the Purchase of Previously Occupied Homes by Combined Lenders Index was 4.75 percent. for loans closed in late October. This is up 13 basis points from 4.62 percent in September.
Average interest rates on all mortgage loans was 4.72 percent, up 9 basis points from 4.63 in September.
The average interest rate on conventional, 30-year, fixed-rate mortgages of $453,100 or less was 4.87 percent, up 10 basis points from 4.77 in September.
The effective interest rate on all mortgage loans was 4.81 percent in October, up 9 basis points from 4.72 in September. The effective interest rate accounts for the addition of initial fees and charges over the life of the mortgage.
The average loan amount for all loans was $315,100 in October, up $9,000 from $306,100 in September.
Source: FHFA – Washington, D.C.
FOR IMMEDIATE RELEASE
The indices are based on a small monthly survey of mortgage lenders, which may not be representative. The sample is not a statistical sample but is rather a convenience sample.
Moreover, Survey respondents were asked to report terms and conditions of all conventional, single-family, fully amortized purchase-money loans closed during the last five working days of the month.
Unless otherwise specified, the indices include 15-year mortgages and adjustable-rate mortgages. The indices do not include mortgages guaranteed or insured by either the Federal Housing Administration or the U.S. Department of Veterans Affairs. The indices also exclude refinancing loans and balloon loans.
October 2018 values are based on 3,869 reported loans from 16 lenders, which include savings associations, mortgage companies, commercial banks, and mutual savings banks.