Fixed Rates Fall Back

The average 30-year fixed mortgage rate fell to 6.25% for the week ending June 25 from 6.32% the previous week, according to Freddie Mac's Primary Mortgage Market Survey.The average 15-year fixed mortgage rate fell from 5.70% to 5.64%, while the average rate for one-year Treasury-indexed ARMs was unchanged, at 4.13%. Fees and points averaged 0.6 of a point for fixed-rate mortgages and 0.7 of a point for ARMs. "This week's easing off in mortgage rates is rooted in the market's wait-and-see posture with regard to the Federal Reserve Board's upcoming actions on interest rates this year, starting with their meeting at the end of June," said Frank Nothaft, Freddie Mac's chief economist. "Mortgage rates have been remarkably stable and affordable, and borrowers responded enthusiastically in May by pushing up new-home sales nearly 15% -- the biggest one-month gain in more than 11 years." A year ago, the average 30-year and 15-year fixed rates were 5.24% and 4.63%, respectively, and the average one-year ARM rate was 3.45%, Freddie Mac said. Freddie Mac can be found online at http://www.freddiemac.com.