Oklahoma State Home Builders Association

An Affiliate of the National Home Builders Association

New Home Loans: Rates and House Prices Both Increase

 
Posted on August 7, 2015 by By Carol Hartzog Communications

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Editor's note: This article was originally published on the NAHB's Eye on Housing blog

Interest rates on conventional mortgages used to buy newly built homes increased in June, according to data released earlier today by the Federal Housing Finance Agency (FHFA). The data show the average contract interest rate increasing by 9 basis points to 3.86 percent, the highest it's been since January.

The average initial fees and charges on the loans decreased by 3 basis points to 1.08 percent, but this small change was not enough to prevent the effective interest rate (which amortizes initial fees over the estimated life of the loan) from climbing to 3.98 percent. This also represents a 9 basis point increase ... Read the NAHB blog post

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