Mortgage Rates Stay Steady - Long Term Rates

Today Freddie Mac released the results of its Primary Mortgage Market Survey (PMMS) in which the 30-year fixed-rate mortgage (FRM) averaged 6.52 percent with an average 0.7 point for the week ending August 7, 2008, unchanged from last week when it averaged 6.52 percent. Last year at this time, the 30-year FRM averaged 6.59 percent.

The 15-year FRM this week averaged 6.10 percent with an average 0.7 point, up from last week when it averaged 6.07 percent. A year ago at this time, the 15-year FRM averaged 6.25 percent.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 6.05 percent this week, with an average 0.6 point, down from last week when it averaged 6.07 percent. A year ago, the 5-year ARM averaged 6.33 percent.

One-year Treasury-indexed ARMs averaged 5.22 percent this week with an average 0.6 point, down from last week when it averaged 5.27 percent. At this time last year, the 1-year ARM averaged 5.65 percent.

(Average commitment rates should be reported along with average fees and points to reflect the total cost of obtaining the mortgage.)

"The housing market is continuing to act as a drag on the economy," said Frank Nothaft, Freddie Mac vice president and chief economist. "Residential fixed investment subtracted 0.6 percentage points off second quarter growth in real GDP.

"More recently, mortgage applications for home purchases in the past few weeks fell to the slowest pace since the week ending February 21, 2003, according to the Mortgage Bankers Association. Finally, although showing some initial signs of improvement, the inventory of unsold homes remains at historically high levels."