In its survey of thrifts, commercial banks and mortgage lending companies for the week ended Aug. 14, Freddie Mac reported the 30-year fixed-rate mortgage averaged 6.52% — the same as the prior week and 10 basis points below a year earlier. The average 15-year fixed-rate mortgage was 6.07%, down 3 BPS from the previous week.

Frank Nothaft, Freddie’s chief economist, explained in the statement that rising consumer credit was offset by weaker retail sales, holding rates relatively steady.

The 10-year Treasury yield was 3.90% in early trading, down from 3.99% seven days earlier, CNNMoney reported. The drop suggests fixed-mortgage rates will head lower.

Bankrate.com’s weekly survey offered no guidance, with 38% of the panelists for the week Aug. 14 to Aug. 20 predicting rates will increase by at least 3 BPS during the next 35 to 45 days, 31% forecasting falling rates and 31% who see no change ahead.

Freddie forecasts the 30-year to average 6.5% this quarter.

The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 6.02 in Freddie’s survey this week, falling 0.03% from the prior week. The average 1-year Treasury-indexed ARM was 5.18%, down from 5.22% the prior week.

The yield on the 1-year Treasury itself was 2.19% yesterday, down from 2.26% seven days earlier, Treasury data indicate. The yield on the 6-month London Interbank Offered Rate was 3.10% yesterday, 0.01% lower than the prior week, Bankrate.com reported. Both the 1-year Treasury and the 6-month LIBOR are used as indices for ARMs, which the Mortgage Bankers Association said accounted for 7% of total applications in its Weekly Mortgage Applications Survey for the week ending Aug. 8, up fractionally from the prior week’s survey.

Overall mortgage applications edged down 2 percent during the latest week, pushing the Market Composite Index down to 425.9, MBA reported. While purchase applications were flat, refinance applications fell 4% during the latest week, nudging the refinance share down to 35% from 36% the prior week.

Government applications rose 3% in MBA’s survey.

Sam Garcia worked in mortgage lending for twenty years prior to becoming publisher of MortgageDaily.com.

e-mail: mtgsam@aol.com