McLEAN, VA -- In Freddie Mac's Primary Mortgage Market Survey, the 30-year fixed-rate mortgage (FRM) averaged 5.98 percent, with an average 0.6 point, for the week ending September 26, 2003, down from 6.01 percent last week. Last year at this time, the 30-year FRM averaged 5.99 percent.

The average for the 15-year FRM this week is 5.30 percent, with an average 0.5 point, unchanged from last week's average of 5.30 percent. A year ago, the 15-year FRM averaged 5.41 percent.

One-year Treasury-indexed adjustable-rate mortgages (ARMs) averaged 3.77 percent this week, with an average 0.6 point, down from last week's average of 3.81 percent. At this time last year, the one-year ARM averaged 4.22 percent.

"Thirty-year fixed mortgage rates this week dropped below 6 percent for the first time in eight weeks, as investors in bond markets were calmed by assurances from Fed monetary policy makers that no action would be taken until 2004 to raise the Federal Funds Rates," said Amy Crews-Cutts, Freddie Mac Deputy Chief Economist.

"The housing market is still very hot due to still-low interest rates. Recent home sales and housing starts numbers are off the charts and will set another big record in 2003," she added.