The Federal Housing Finance Agency reported Tuesday that the national average contract mortgage rate for the purchase of a previously occupied home — an index for ARM loans —fell to 3.29% in December from 3.36% in November. That is down 0.07% from the previous month.

The average rate for a conventional, 30-year loan of $417,000 or less dropped by 7 basis points to 3.47% in December after reaching 3.54% in November.

Interest rates in the study are typically determined 30 to 45 day prior to the closing of the loan, making the most recent data reflective of mid- to late- November market conditions. 

The effective interest rate, which includes the amortization of initial fees and charges, was at 3.42% in December, down 7 basis points from 3.49% in November. 

Dropping 8 basis points from 3.36% in November, the contract rate on the composite of all mortgage loans (both fixed- and adjustable-rate) was 3.28% in December.

The average loan term in December hit 27.4 years in December, unchanged from November. Meanwhile, the average loan-to-value ratio in December was 76.3%, a 0.6% increase from November. 

During the same period, the average loan amount was $274,100 in December, up $1,800 from $272,300 in November.

Taking a look at purchase-money mortgage loans, 15% were classified as no-point mortgages, down from 16% in November.

mhopkins@housingwire.com