Rates Decline

The average 30-year fixed mortgage rate fell from 6.80% to 6.72% over the seven-day period ended July 27, according to Freddie Mac's Primary Mortgage Market Survey.The average 15-year fixed mortgage rate fell from 6.40% to 6.34%, the average rate for five-year Treasury-indexed hybrid adjustable-rate mortgages declined from 6.36% to 6.35%, and the average rate for one-year Treasury-indexed ARMs decreased from 5.80% to 5.78%, Freddie Mac reported. Fees and points averaged 0.3 of a point for 30-year fixed-rate mortgages, 0.4 of a point for 15-year fixed-rate mortgages and hybrid ARMs, and 0.7 of a point for one-year ARMs. "Mortgage rates drifted lower this week on indications that economic growth is moderating, inflation remains under control, and the Fed just may [stop] raising rates for awhile," said Frank Nothaft, Freddie Mac's chief economist. "Meanwhile, recently released new-home sales for June fell to a lower-than-expected rate. That drop can be traced directly to higher mortgage rates, which are also helping to slow the growth of house prices in 2006." A year ago, the average 30-year and 15-year fixed rates were 5.77% and 5.34%, respectively, and the average five-year and one-year ARM rates were 5.27% and 4.46%, respectively, Freddie Mac said. Freddie Mac can be found online at http://www.freddiemac.com.