The results of Freddie Mac's Primary Mortgage Market Survey® (PMMS®) in which the 30-year fixed-rate mortgage (FRM) averaged 6.52 percent with an average 0.4 point for the week ending August 23, 2007, down from last week when it averaged 6.62. Last year at this time, the 30-year FRM averaged 6.48 percent.

The 15-year FRM this week averaged 6.18 percent with an average 0.5 point, down from last week when it averaged 6.30 percent. A year ago, the 15-year FRM averaged 6.18 percent.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 6.34 percent this week, with an average 0.6 point, down from last week when it averaged 6.35 percent. A year ago, the 5-year ARM averaged 6.14 percent.

One-year Treasury-indexed ARMs averaged 5.60 percent this week with an average 0.6 point, down from last week when it averaged 5.67 percent. At this time last year, the 1-year ARM averaged 5.60 percent.

Frank Nothaft, vice president and chief economist of Freddie Mac, said “Interest rates on conforming long-term fixed-rate mortgages and one-year adjustable rate mortgages trended down by about one-tenth of a percent in the past week,” “This is as a result of yields on Treasury securities coming down, and the Fed’s decision to cut the discount rate by half a percent to 5.75 percent last Friday.

“Additionally, economic indicators released in the past week reflect slowing housing activity in July. Last month’s housing starts dropped to the lowest level since January 1997 at an annualized pace of 1.38 million units, while one-unit housing starts experienced the fourth consecutive month of decline. Building permits also fell to the lowest level in nearly 11 years, and the number of one-unit permits issued was at the lowest since June 1995.”
 

Source: Freddiemac, Primary Mortgage Market Survey® (PMMS®), www.freddiemac.com