Mortgage rates closed out December—and the year—with one final, small increase, the Federal Housing Finance Agency (FHFA) reported.
FHFA’s national data for December shows the contract interest rate on the composite of all mortgage loans was 4.25 percent, an increase of 3 basis points from the month prior.
For the same month in 2012, the index rate was 3.29 percent.
Interest rates are typically locked in 30-45 days before a loan is closing—meaning December’s data reflect market rates from mid- to late November, FHFA says.
The effective interest rate, which accounts for initial fees and charges over the life of the mortgage, rose 2 basis points to 4.40 percent.
The average interest rate for a 30-year fixed-rate loan with a conventional loan balance was 4.54 percent, up 6 basis points.
Meanwhile, loan amounts saw a substantial leap. The average loan amount for all loans in December was $277,600, up nearly $13,000 from November.