The 15-year FRM this week averaged 5.89 percent with an average 0.5 point, down slightly from last week when it averaged 5.90 percent. A year ago, the 15-year FRM averaged 6.17 percent.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.92 percent this week, with an average 0.6 point, down slightly from last week when it averaged 5.93 percent. A year ago, the 5-year ARM averaged 6.16 percent.

One-year Treasury-indexed ARMs averaged 5.45 percent this week with an average 0.7 point, also down slightly from last week when it averaged 5.47 percent. At this time last year, the 1-year ARM averaged 5.63 percent.

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

"Mortgage rates slipped following the latest reports of moderation in inflation rates from the core producer price and consumer price indexes," said Frank Nothaft, Freddie Mac vice president and chief economist. "Excluding food and energy, the core inflation rate for consumer prices rose 2.5 percent year-over-year, the smallest annual growth since May 2006. This helped calm markets and brought mortgage rates down.

"The low mortgage rates that have prevailed so far in 2007 may have a stabilizing effect on the housing sector. Both housing starts and new permits for March came in above expectations, but February's housing starts numbers were revised downward. Because of weather-induced fluctuations in housing statistics, we will have to see what the numbers show later in the Spring to gauge whether the March readings are indeed a signal of market turnaround."

Source: Freddie Mac