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Conventional Interest Rates More Stable Than Its Home Prices

According to the Federal Housing Finance Agency (FHFA), mortgage interest rates during the month of October showed a 5 basis point increase for existing homes. Mortgage Interest rates newly built homes with a Conventional purchase loan on the other hand remains unaffected.

The average effective rate for new home loans actually has been stable since June 2014. The average price and loan size for a purchase with a Conventional has increased for new homes. This is the second month trend, an increase of about $10,000 more. What used to be $422,3000 is now $432,200, which puts this amount at the third largest ever recorded. Average price fro the month of January and April of this year were $434,000.

Based on a Mortgage Interest Rate Survey (MIRS) from the FHFA, the average interest rate for all mortgage loans was up by 4.11% in October, which is 4 basis points up from the month of September’s 4.07%. The average loan amount for all loan types increased by as much as $4,000, adding on to September’s $281,000.

Seasonally adjusted, the purchase-only home price index (HPI) expanded in 40 states in the third quarter of 2014’s (September) U.S. HPI report. The top five states showing the highest annual appreciation are:

1) Nevada
Ranked as number one, the 1-yr appreciation was 10.35%. During the third quarter (September 30, 2014), there was a 1.92% increase.

2) Hawaii
The popular vacation state’s annual increase was 8.14%, with an increase of 8.59% in the third quarter.

3) California
Ranked as number three on the HPI Appreciation list, California experienced an annual increase of 8.12% and 1.09% in the third quarter.

4) North Dakota
North Dakota’s annual change was 8.08%, whereas the change in the third quarter was 2.28%.

5) Florida
The annual change in home price appreciation for the sunshine state was 7.85% and 2.05% in the third quarter.

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About the Author

About the Author: Jessica Lucas is the managing editor for Mortgage Home Base, a top real estate finance blog dedicated to helping borrowers and home buyers understand the home loan process. Follow Jessica on Google +, and share your comments here. .
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