Following October Federal Housing Finance Agency (FHFA) figures reporting declining rates on existing home loans as rates on new home loans stubbornly continued to inch up, November saw drops in both areas. The data shows a 6 point decline in the average contract interest rate on newly constructed home loans as well as a decline in the initial fees on mortgages for new homes from an average of 1.30 to 1.27 percent. The average effective interest rate on new home loans was lowered to 4.39 percent due to the combined effect of declining contract rates and initial fees. November’s numbers reflect little movement regarding loan size, home pricing, or the average loan-to-price ratio.
Read the full article here: Rates on New Home Loans Join Downward Trend