Interest Rates on Newly Built Homes Rising

By Jill McGovern

In September, interest rates on conventional mortgages used to purchase newly built homes increased for the fourth month in a row, according to data released today by the Federal Housing Finance Agency (FHFA).

During the month, the average contract interest rate increased by 10 basis points to 4.3 percent, while initial fees increased to 1.14 percent (from an average of 1.06 percent the previous month).

The combination drove FHFA’s key measure of the average effective interest rate on new home loans UP the highest since it's been since July 2011.

Jill McGovern is licensed by the California Bureau of Real Estate to buy and sell homes in Dana Point and across coastal Orange County. You can reach her by calling 949-510-9494 or by visiting JillMcGovern.com.