Freddie Mac's market rate survey is out today, and it shows that 30-year fixed-rate mortgages averaged 6.52 percent with an average of 0.4 point for the week ending August 23, 2007, down from last week when it averaged 6.62 percent. One year ago, the 30-year fixed rate averaged 6.48 percent, the GSE reported. Other rate information:
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, Freddie Mac vice president and chief economist, said the rate drop was due to a drop in Treasury yields during the past week, as well as (obviously) the Fed's decision late last week to cut the discount rate by 50 basis points.