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Aug. 1, 2014 – A Federal Housing Finance Agency index of new mortgage contracts showed mortgage interest rates continued to decrease in June, going down 4 basis points from an effective interest rate of 4.28 percent in May to 4.24 percent.

The index is calculated from the agency's Monthly Interest Rate Survey. The index showed the contract rate on the composite of all mortgage loans was 4.09 percent, down from 4.13 percent in May. The agency said the decreasing numbers reflect market rates in mid- to late-May, as interest rates are typically established at least 30 days before a loan is closed.

The survey showed the average interest rate on a conventional 30-year, fixed-rate mortgage of $417,000 or less was 4.34 in June, down 3 basis points from May. The average loan amount for all mortgage loans was $292,200 – up from $282,600 in May.