McLEAN, VA -- Freddie Mac (NYSE:FRE) yesterday released the results of its Primary Mortgage Market Survey in which the 30-year fixed-rate mortgage (FRM) averaged 6.08 percent, with an average 0.6 point, for the week ending July 29, 2004, up from last week when it averaged 5.98 percent. Last year at this time, the 30-year FRM averaged 5.94 percent.

The average for the 15-year FRM this week is 5.49 percent, with an average 0.6 point, up from last week when it averaged 5.39 percent. A year ago, the 15-year FRM averaged 5.27 percent.

One-year Treasury-indexed adjustable-rate mortgages (ARMs) averaged 4.17 percent this week, with an average 0.6 point, up from last week when it averaged 4.12 percent. At this time last year, the one-year ARM averaged 3.67 percent.

"Mortgage rates rose a little this week in response to expectations that the Federal Reserve Board (Fed) is willing to move more aggressively if inflation should become an issue," said Frank Nothaft, Freddie Mac vice president and chief economist. "So far, inflation seems to be under control, but if the economy should heat up too rapidly, the Fed would have to act quickly and decisively.

"In other news, the national homeownership rate reached an all time high, according to the Census Bureau, of 69.2 percent. This is but one indicator of how strong the housing market has been over the last number of years."