Rates Continue Drop from June High

Average mortgage rates dipped for almost each category in the week ending July 2, according to a weekly survey released today by the mortgage giant Freddie Mac (FRE: 1.23 -1.60%).

The average 30-year fixed mortgage rate (FRM) dropped to 5.32% with an average .7 point, down from 5.42% for last week.

15-year FRMs averaged 4.77% with .7 point, dropping from 4.87% last week.

Five-year adjustable-rate mortgages (ARMs) also slipped to 4.88% this week with .7 point, down from 4.99% a week ago. But the average rate for 1-year ARMs jumped slightly to 4.94% with .6 point from 4.93% last week.

The 30-year FRM reached its 2009 peak during the week of June 11. It has since dropped almost a quarter-of-a-percentage point lower for this week, creating a 7.2% increase in conventional mortgage applications by the end of June, according to the Mortgage Bankers Association.

A separate survey conducted by Bankrate.com also showed the drop in mortgage rates as markets awaited the release of the June employment report. Thirty-year FRMs dropped to 5.7% with an average .48 point.

Write to Jon Prior.