Mortgage rates edge down

Rates on 30-year fixed-rate mortgages edged down to 5.14 percent with an average of 0.7 point this week, compared with 5.2 percent a week ago and 6.26 percent a year ago, Freddie Mac said in releasing results of its Primary Mortgage Market Survey.

The 15-year fixed-rate mortgage averaged 4.63 percent for the week ending July 16, with an average 0.7 point, down from 4.69 percent last week and 5.78 percent a year ago.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 4.83 percent with an average 0.7 point, up slightly from 4.82 percent last week but down from 5.8 percent a year ago.

One-year Treasury-indexed ARMs averaged 4.76 percent with an average 0.5 point, down from 4.82 percent last week and 5.1 percent a year ago.

Those rates were for borrowers with good credit making 20 percent down payments on loans eligible for purchase by Freddie Mac. Borrowers making smaller down payments or seeking loans too large or risky for Freddie Mac could expect to pay more.

Lower rates boosted applications to refinance mortgages up 17.7 percent last week, but requests for purchase loans were down 9.4 percent, the Mortgage Bankers Association said (see story).

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