Short-term adjustable rate mortgages (ARMs) were unchanged during the last week, but longer term fixed and adjustable rate mortgages did move; if up or down depends on whether you accept the surveys behind the reports of Freddie Mac or the Mortgage Bankers Association (MBA).

According to Freddie Mac's Primary Mortgage Market Survey, the 30-year fixed-rate mortgage (FRM) averaged 6.73 percent with an average of 0.4 point, up from 6.63 percent and 0.4 point the previous week. The MBA's Weekly Mortgage Applications Survey for approximately the same time frame reported that the average contract interest rate for the 30-year FRM was down four basis points to 6.61 percent from the previous week while points increased from 1.52 to 1.60 (including the origination fee.)



According to Freddie Mac, the 15-year FRM for the most recent week averaged 6.39 percent, up from the previous week's 6.30 percent. Fees and points were unchanged at 0.4. MBA, on the other hand, reported the 15-year FRM at an average of 6.29 percent compared to 6.31 percent the previous week. Points decreased to 1.33 from 1.41.

Five-year Treasury-indexed hybrid adjustable-rate mortgages averaged 6.35 percent with an average 0.5 point, up from last week when they averaged 6.29 percent with 0.4 point. MBA does not track the five-year hybrid mortgage product.

One-year ARMS were unchanged in both surveys. Freddie Mac's pegged the average interest rate at 5.71 percent this week. While the rate was unchanged, points increased from 0.4 to 0.5. MBA's survey reported the one-year at 5.60 percent but with points decreasing to 1.11 from 1.16.

"A favorable employment report for June and robust consumer credit growth for May pushed long-term mortgage rates higher in the past week, nearly eliminating the declines made in rates over the previous three weeks," said Frank Nothaft, Freddie Mac vice president and chief economist. "In addition, consumer credit jumped by $12.9 billion in May, almost double market expectations.

"Our July economic outlook forecasts 30-year fixed-rates to stay around their current level through the end of year. The refinance share of loan applications is expected to continue decreasing throughout the same time frame, averaging about 35 percent in 2007, the lowest level since 2000. Freddie Mac expects weakness in the housing market to persist in the second half of the year, with 2007 total home sales and housing starts hitting 5-year lows."

The MBA survey showed mortgage application volume was up 0.9 percent on a seasonally adjusted basis and 25.9 percent on an unadjusted basis from the previous week which was shortened by the Independence Day holiday. Volume was up 15.7 percent from the same week in 2006.

Refinancing activity increased to 37.7 percent of total applications from 36.2 percent a week earlier and adjustable rate mortgages had a market share of 21 percent compared to 20.4 percent the week ended July 5.