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June 27, 2014 – A Federal Housing Finance Agency index showed mortgage interest rates decreased in May, going from an effective interest rate of 4.38 percent in April down 10 basis points to 4.28 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 4.13 percent, down from 4.23 percent in April. The agency said the decreasing numbers reflect market rates in mid- to late-April, 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 4.37 in May, a decrease of 16 basis points from April. The average loan amount for all mortgage loans was $282,600 – down from $283,800 in April.