Rates Slide

The average 30-year fixed mortgage rate fell from 6.69% to 6.68% for the seven-day period ended Aug. 2, according to Freddie Mac's Primary Mortgage Market Survey.The average 15-year fixed mortgage rate fell from 6.37% to 6.32%, the average rate for five-year Treasury-indexed hybrid adjustable-rate mortgages declined from 6.30% to 6.29%, and the average rate for one-year Treasury-indexed ARMs fell from 5.69% to 5.59%, Freddie Mac reported. Fees and points averaged 0.3 of a point for fixed-rate mortgages and 0.5 of a point for ARMs. "Market investors seeking safety from the subprime fallout bought Treasury securities, pushing bond yields down and allowing mortgage rates to drift a bit lower," said Frank Nothaft, Freddie Mac's chief economist. "Sales of new and existing homes fell in June, and prices continue to weaken, especially in the markets that had recorded the strongest gains over the past few years. There are early signs, however, that the market is stabilizing." A year ago, the average 30-year and 15-year fixed rates were 6.63% and 6.27%, respectively, and the average hybrid and one-year ARM rates were 6.27% and 5.69%, Freddie Mac said. Freddie Mac can be found online at http://www.freddiemac.com.