Freddie Mactoday released the results of itsPrimary Mortgage Market Survey, showing mortgage rates dropping sharply amid falling bond yields and signs of a weaker than expected economy. The 30-year fixed averaged 4.39 percent, its lowest level for 2011. The 15-year fixed and 5-year ARM set new historical record lows averaging 3.54 percent and 3.18 percent, respectively.

News Facts

• 30-year fixed-rate mortgage(FRM) averaged 4.39 percent with an average 0.8 point for the week endingAugust 4, 2011, downfrom last week when it averaged 4.55 percent. Last year at this time, the 30-year FRM averaged 4.49 percent.

• 15-year FRMthis week averaged 3.54 percent with an average 0.7 point, down from last week when it also averaged 3.66 percent.A year ago at this time, the 15-year FRM averaged 3.95 percent.

• 5-year Treasury-indexed hybrid adjustable-rate mortgage(ARM) averaged 3.18 percent this week, with an average 0.6 point,down from last week when it averaged 3.25 percent. A year ago, the 5-year ARM averaged 3.63 percent.

• 1-year Treasury-indexed ARMaveraged 3.02 percent this week with an average 0.5 point, up from last week when it averaged 2.95 percent. At this time last year, the 1-year ARM averaged 3.55 percent.

Average commitment rates should be reported along with average fees and points to reflect the total cost of obtaining the mortgage. Visit the following links forRegional and National Mortgage Rate DetailsandDefinitions.

Quotes

Attributed toFrank Nothaft, vice president and chief economist, Freddie Mac.

• "Treasury bond yields fell markedly aftersignsthe economy was weaker than what markets had previously thought allowing fixed mortgage rates to follow this week with the 15-year fixed and 5-year ARM setting new historical lows. The economy grew 1.3 percent in the second quarter, which was below the market consensus forecast, and first quarter growth was cut to less than a quarter of what was originally reported. In fact, the first half of this year was the worst six-month period since the economic recovery began inJune 2009. Moreover,consumer spendingfell 0.2 percent in June, representing the first decline sinceSeptember 2009.

• "On a positive note, there were indications that the housing market is firming. Real residential fixed investments added growth to the economy in the second quarter after subtracting from growth over the first three months of the year. TheCoreLogic National House Price Indexrose for the third straight month in June (not seasonally adjusted) and was the first three-month gain sinceJune 2010. Finally,pending existing home salesrose for a second consecutive month in June and was up nearly 20 percent fromJune 2010when the housing tax credits expired."