RealEstateEconomyWatch.com

The National Average Contract Mortgage is 4.62 percent, lower than it has been all year. This is a decrease of 0.12 percent from the previous month. Many lenders use this rate in adjusting some adjustable-rate mortgages. This index was the only index rate that federally chartered savings and loan associations could use as an adjustable-rate mortgage index in the early 1980s. 

The average interest rate on conventional, 30-year, fixed-rate mortgage loans of $417,000 or less decreased 13 basis points to 4.79 percent in June. These results reflect loans closed during the June 24-30 period.  Typically, the interest rate is determined 30 to 45 days before the loan is closed.  Thus, the reported rates depict market conditions prevailing in mid- to late-May.

The contract rate on the composite of all mortgage loans (fixed- and adjustable-rate) was 4.61 percent in June, down 14 basis points from 4.75 percent in May.  The effective interest rate, which reflects the amortization of initial fees and charges, was 4.74 percent in June, down 13 basis points from 4.87 percent in May.