The 15-year FRM this week averaged 6.06 percent with an average 0.5 point, down from last week when it averaged 6.11 percent. A year ago, the 15-year FRM averaged 5.37 percent.

Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey (PMMSSM) in which the 30-year fixed-rate mortgage (FRM) averaged 6.40 percent with an average 0.5 point for the week ending September 21, 2006, down from last week when it averaged 6.43 percent. Last year at this time, the 30-year FRM averaged 5.80 percent.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 6.08 percent this week, with an average 0.5 point, down from last week when it averaged 6.10 percent. A year ago, the five-year ARM averaged 5.31 percent.

One-year Treasury-indexed ARMs averaged 5.54 percent this week with an average 0.8 point, down from last week when it averaged 5.60 percent. At this time last year, the one-year ARM averaged 4.48 percent.

A slowing housing market and signs that inflation is leveling off have helped to lower mortgage rates lately and keep them more affordable. Going forward, the economy is expected to expand at a somewhat slower rate than it did in the first half of the year. This should continue to keep inflation in check, and therefore, mortgage rates low.

Edwina Baniqued