McLEAN, VA -- In Freddie Mac's Primary Mortgage Market Survey, the 30-year fixed-rate mortgage (FRM) averaged 6.24 percent, with an average 0.7 point, for the week ending August 15, 2003, down from 6.34 percent last week. Last year at this time, the 30-year FRM averaged 6.22 percent.

The average for the 15-year FRM this week is 5.58 percent, with an average 0.7 point, down from last week's average of 5.66 percent. A year ago, the 15-year FRM averaged 5.63 percent.

One-year Treasury-indexed adjustable-rate mortgages (ARMs) averaged 3.75 percent this week, with an average 0.7 point, down from last week's average of 3.80 percent. At this time last year, the one-year ARM averaged 4.39 percent.

"The bond markets got a little ahead of themselves causing yields to rise too quickly over the past few weeks. This week saw a bit of a correction and mortgage rates fell for the first time in eight weeks," said Amy Crews Cutts, Freddie Mac's deputy chief economist. "Continued volatility in financial markets, however, will keep rates teetering up and down for some time to come.

"Shorter term rates, such as the 1-year ARM, have shown a bit more stability, rising more slowly than the fixed-rates have. This has caught the attention of recent homebuyers and refinancers who are opting more and more lately for the lower starting rates of the ARMs as opposed to the somewhat higher fixed-rates."