Average Rates Rise To 9.35%
Effective interest rates on FHA-insured and VA-guar-anteed home loans closed were higher during the first week of July than they were i a month earlier.</br></br>The Department of Housing and Urban Development announced that the effective interest rate on loans closed was 9.35 per cent, compared to 9.21 per cent in early June.</br></br>Similarly, the effective interest rate on new commitments to make federally underwritten home loans rose to 9.39 per cent, 10 basis points above the 9.29 per cent rate reported in early June.</br></br>At each major lending institution, the effective interest rate on loans closed in early July was at least 10 basis points above the rate reported a month ago. The effective rate at mortgage companies was 9.49 per cent; at commercial banks the rate was 9.27 per cent; at mutual savings banks 8.91 per cent; and at savings and loan associations the rate was 9.23 per cent.</br></br>The average effective interest rate in early July on newly closed FHA-insured and VA-guaranteed loans in ! the Atlanta metropolitan area was 9.68 per cent; in | Chicago, it was 9.63 per cent; in Washington, D.C.