From East to West Reeds Are The Best!
The Federal Housing Finance Agency (FHFA) reported that mortgage rates overall were nearly stable in April, changing by a mere 2 basis points. The same was true for the subset of mortgages used to purchase newly built homes.
The average contract interest rate on conventional mortgages for new homes edged down by 3 basis points, while the average initial fees on the mortgages increased. The combination caused the average effective interest rate on new home loans to drop by only a single basis point to 3.92 percent.
The terms on conventional mortgages for new homes have been generally stable for the past three months. Meanwhile, the average size of conventional mortgages used to purchase newly built homes increased by $3,000, or 0.9 percent, to $342,000 in April. The average loan size set a record high in February and has continued to edge upward ever since
Rich & Annie Reed
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