According to Freddie Mac's Primary Mortgage Market Survey® (PMMS®) for the previous week, the market has rolled back a small portion of the large increases in mortgage rates that were recorded over the past weeks.

Frank Nothaft, Freddie Mac vice president and chief economist said that "Mortgage rates eased this week due to market concerns that the housing market will be a longer drag on the economy," "May's housing starts to fell for the first time in four months, while homebuilder optimism in June fell to a sixteen-year low."

The survey pointed out the following:

The 30-year fixed-rate mortgage (FRM) rolled back to 6.69 percent in the most recent week which had increased from 6.15 percent to 6.74 percent between May 10 and June 14. Fees and points increased from 0.4 to 0.5 for the week.

The 15-year FRM decreased six basis points to 6.37 percent from its 2007 high of 6.43 percent the week before. Fees and points increased from 0.4 to 0.5 for this product as well.

The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 6.31 percent for the week with an average 0.6 point. In the previous week it averaged 6.37 percent with 0.5 point.

The biggest decline was in the one-year Treasury-indexed ARM which averaged 5.66 compared to 5.75 the previous week. Points were unchanged at 0.7.

As with the Freddie Mac survey, the greatest change was the average contract interest rate on the one-year ARM which dropped 19 basis points to 5.51 percent.

As for the Mortgage Bank Association’s survey the average contract interest rate for the 15-year FRM was down from 6.28 percent the last week to 6.24 percent this week.
 

Reference: FreddieMac, Primary Mortgage Market Survey® (PMMS®), www.freddiemac.com