McLEAN, VA -- Freddie Mac (NYSE:FRE) released the results of its Primary Mortgage Market Survey in which the 30-year fixed-rate mortgage (FRM) averaged 5.68 percent, with an average 0.6 points, for the week ending December 16, 2004, down from last week when it averaged 5.71 percent. Last year at this time, the 30-year FRM averaged 5.88 percent.

The average for the 15-year FRM this week is 5.11 percent, with an average 0.6 points, down as well from last week when it averaged 5.14 percent. A year ago, the 15-year FRM averaged 5.24 percent.

One-year Treasury-indexed adjustable-rate mortgages (ARMs) averaged 4.18 percent this week, with an average 0.7 point, up from last week when it averaged 4.15 percent. At this time last year, the one-year ARM averaged 3.77 percent.

"The Commerce Department report on housing starts showed a considerable drop in starts in November," said Frank Nothaft, Freddie Mac vice president and chief economist. "However, with December's mortgage rates continuing to dip even further, we expect housing starts will bounce back fairly quickly.

"There is no doubt now that 2004 will be a record year for single-family construction. That said, because of low mortgage rates, we feel confident that 2005 will not be very far behind this year."