Nashville – The Federal National Mortgage Association has discontinued its free market auction system for commitments to purchase conventional home mortgages. Therefore, the Commissioner of Financial Institutions Greg Gonzales announced the maximum effective rate of interest per annum for home loans, for the month of February, is 7.95%.
The rate is an amount equal to four percentage points above the index of market yields of long-term government bonds adjusted to a thirty (30) year maturity by the U. S. Department of the Treasury.
For the most recent weekly average statistical data available preceding the date of this announcement, the calculated rate is 3.95 percent.
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