Average mortgage rates have dipped slightly, according to Freddie Mac. The lower average rates will hopefully help the housing market. Freddie Mac released the results of its Primary Mortgage Market Survey (PMMS) in which the 30-year fixed-rate mortgage averaged 5.32 percent with an average 0.7 point for the week ending July 2, 2009, down from last week when it averaged 5.42 percent. Last year at this time, the 30-year fixed-rate mortgage averaged 6.35 percent.

15-year fixed-rate mortgages averaged 4.77 percent this past week with an average 0.7 point, down from last week when it averaged 4.87 percent. A year ago at this time, the 15-year fixed-rate mortgage averaged 5.92 percent.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 4.88 percent this week, with an average 0.7 point, down from last week when it averaged 4.99 percent. A year ago, the 5-year adjustable-rate mortgages averaged 5.78 percent.

One-year Treasury-indexed ARMs averaged 4.94 percent this week with an average 0.6 point, up slightly from last week when it averaged 4.93 percent. At this time last year, the 1-year ARM averaged 5.17 percent.

“Lower mortgage rates are helping to support the housing market,” said Frank Nothaft, Freddie Mac vice president and chief economist. “The 30-year fixed-rate mortgage rate peaked this year over the week of June 11 and are now around a quarter-of-a-percentage point lower this week. This has led to a 7.2 percent increase in conventional mortgage applications for home purchases by the last full week of June, according to the Mortgage Bankers Association.

“The decline in house prices may be moderating as well. Home values fell at a monthly rate of 0.6 percent in April, representing the smallest decrease since June 2008, according to the S&P/Case-Shiller 20-city composite index. In addition, home prices rose in eight of the cities in April.”