McLEAN, VA -- Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey (PMMS) in which the 30-year fixed-rate mortgage (FRM) averaged 6.33 percent with an average 0.5 point for the week ending October 25, 2007, down from last week when it averaged 6.40 percent. Last year at this time, the 30-year FRM averaged 6.40 percent.

The 15-year FRM this week averaged 5.99 percent with an average 0.6 point, down from last week when it averaged 6.08 percent. A year ago, the 15-year FRM averaged 6.10 percent.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 6.03 percent this week, with an average 0.5 point, down from last week when it averaged 6.11 percent. A year ago, the 5-year ARM averaged 6.14 percent.

One-year Treasury-indexed ARMs averaged 5.66 percent this week with an average 0.6 point, down from last week when it averaged 5.76 percent. At this time last year, the 1-year ARM averaged 5.60 percent.

"Market concerns about slower economic growth over the next few months allowed mortgage rates to drift lower from last week," said Frank Nothaft, Freddie Mac vice president and chief economist. "How much of a drag the housing slump will be on the economy remains unknown. Additionally, recent reports suggest some regional manufacturing weakness in October."

"Meanwhile, sales of existing single-family homes in September dropped to the slowest pace in nearly a decade -- since January 1998 -- reflecting the effects of the credit tightening that occurred in August."

Published: October 26, 2007

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