There were mixed behaviors of mortgage rates as Short Term Mortgage moves upward while Long Term moves downward. Freddie Mac released the results of its Primary Mortgage Market Survey® (PMMS®) in which the 30-year fixed-rate mortgage (FRM) averaged 6.45 percent with an average 0.5 point for the week ending August 30, 2007, down from last week when it averaged 6.52. A year ago, the 30-year FRM averaged 6.44 percent.

The 15-year FRM this week averaged 6.12 percent, down from last week when it averaged 6.18 percent. Last year at this time, the 15-year FRM averaged 6.14 percent.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 6.35 percent this week, up slightly from last week when it averaged 6.34 percent. Last year, the 5-year ARM averaged 6.11 percent.

One-year Treasury-indexed ARMs averaged 5.84 percent this week, up from last week when it averaged 5.60 percent. At this time last year, the 1-year ARM averaged 5.59 percent.

Frank Nothaft, Freddie Mac vice president and chief economist said that “Interest rates on conforming long-term fixed-rate mortgages declined slightly, while rates on one-year adjustable rate mortgages increased by about a quarter of a percent. The increase in ARM rates is consistent with movement of the yields on short-term Treasury securities, which have exhibited higher volatility recently due to market uncertainties."

“In other news, new home sales defied consensus expectations and rose in July to 870 thousand units, led by a 22 percent increase in the Western region. Existing home sales fell, however, though by less than the market had forecasted, to 5.75 million units, with the decline limited to the Midwest region.”
 
 Reference: FreddieMac,  Primary Mortgage Market Survey® (PMMS®), www.freddiemac.com