Mortgage Rates Drop While Loans Get Larger

The Federal Housing Finance Agency released data showing that interest rates on conventional mortgages that were used to buy newly built homes fell in November to 4.03 percent.

The rates are now at their lowest since May after falling 7 basis points. Additionally, the effective interest rate dropped to 4.16 percent, highlighting a six-month low. While mortgage rates fell, the size of loans on new home mortgages grew. The average size of the conventional mortgage to purchase a newly built home rose $324,900 in October to an all-time high of $335,300 in November.

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