McLEAN, VA -- Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey^SM (PMMS^SM) in which the 30-year fixed-rate mortgage (FRM) averaged 6.48 percent with an average 0.4 point for the week ending August 24, 2006, down from last week's average of 6.52 percent. Last year at this time, the 30-year FRM averaged 5.77 percent. This is the lowest the 30-year FRM has been since the week ending April 6, 2006, when it averaged 6.43 percent.

The average for the 15-year FRM this week is 6.18 percent, with an average 0.4 point, unchanged from last week when it averaged 6.20. A year ago, the 15-year FRM averaged 5.35 percent. This is the lowest the 15-year FRM has been since the week ending April 20, when it was 6.17 percent.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) fell to 6.14 percent this week, with an average 0.5 point, from last week's rate of 6.18 percent. A year ago, the five-year ARM averaged 5.30 percent.

One-year Treasury-indexed ARMs averaged 5.60 percent this week, with an average 0.7 point, was down from last week when it averaged 5.65 percent. At this time last year, the one-year ARM averaged 4.56 percent.

"The Fed has acknowledged that it is closely monitoring the housing market as it slows down from last year's record pace," said Frank Nothaft, Freddie Mac vice president and chief economist. "Although this fuels arguments about whether we will experience a soft landing or a bursting housing bubble, market watchers also perceive that it possible that the Fed may stop raising short-term interest rates over the near term. This perception takes upward pressure off mortgage rates."

"Meanwhile, although both existing and new home sales for July fell below market expectations -- confirming the slowdown in the housing market -- we still expect 2006 to be the third highest year on record for total sales."

Published: August 25, 2006

Use of this article without permission is a violation of federal copyright laws.