Eye on Housing's Michael Neal determined that interest rates on conventional mortgages for newly-built homes fell again in August--which extends the decline to seven consecutive months.

According to data released by the Federal Housing Finance Agency (FHFHA), the average contract rate on the loans fell from 3.64% to 3.60%, and initial fees and charges went from 1.11% to 1.09%.

As a result, the average effective interest rate on loans used to purchase newly built homes, which amortizes initial fees over the estimated life of the loan, dropped to 3.68% from 3.74%. The effective interest rate on loans used to purchase newly built homes has not risen since the end of 2015.

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