Effective Rate on new Home Loans Drops Below Four Percent

Data from the Federal Housing Finance Agency shows that the average effective interest rate on conventional mortgages to purchase new homes dropped below four percent, the NAHB reports.

The average size of conventional mortgages used to purchase new homes and the average price of the homes have been drifting upward, a trend that continued in February.

The average loan amount increased from $331,700 to $338,600, while the average new home price increased from $440,300 to $449,400.

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