This week, again the mortgage rates dropped down a little. Experts believe that the main reason behind the fall in the mortgage rates is the market's concern for the slower economic growth during the next few months. The market is also worried about housing slump and how long the market will continue to suffer because of this. These worries were raised due to the recent report of October, which explains that there is some regional manufacturing weakness.

Last week the average interest rate of 30 Year Fixed Rate Mortgages was 6.40 percent. This fell down to an average of 6.33 percent for this week. Last year at this point of time the average interest rate of 30 Year Fixed Rate Mortgages was 6.40 percent.

This week the average interest rate of 15 Year Fixed Rate Mortgage is 5.99 percent, lower than 6.08 percent of last week. A year ago the average interest rate of 15 Year Fixed Rate Mortgage was 6.10 percent.

This week the interest rate of the 5 Year Treasury indexed hybrid adjustable rate mortgages averaged 6.03 percent, lower than 6.11 percent of last week. Last year at this point of time the average interest rate of 5 Year Treasury indexed hybrid adjustable rate mortgage was 6.14 percent.

The interest rate of the 1 Year Treasury indexed adjustable rate mortgages also fell down. This week its average interest rate is 5.66 percent, lower than 5.76 percent, the average of last week. A year ago the average interest rate of 1 Year Treasury indexed adjustable rate mortgage was 5.60 percent.

To gain the rates, the 30 Year Fixed Rate Mortgages and the 5 Year Adjustable Rate Mortgages required payment of an average 0.5 Point, while the 15 Year Fixed Rate Mortgages and the 1 Year Adjustable Rate Mortgages required payment of an average 0.6 point. A point is 1% of the mortgage amount, charged as prepaid interest.

Mr. Frank Nothaft, Vice President and Chief Economist of Freddie Mac, pointed out towards the drop in the existing single-family sale during the month of September as a result of the credit tightening that took place in the month of August. This was the slowest pace in the sale of the single-family home ever after January 1998. He also said that this week, both the economic indicators and mortgage rates came in a mixed form.

The applications for mortgage were almost the same to what it was during the previous week on a seasonally adjusted basis. Even though it increased by 11.2 percent on an unadjusted basis and was 11.5 percent higher than what it was during last year on the same week. The previous week had been a little shorter because of the Columbus Day holiday, which accounts for a little low numbers.

Refinancing as a part of all the mortgage activities increased by 1.7 percent, from the previous week's 45.3 percent to 47.0 percent this week and the market share of the adjustable rate mortgage also increased by 0.7 percent. This week it reached to 14.2 percent from the previous week's 13.5 percent.