In Freddie Mac's survey, the 30-year fixed-rate mortgage sank to an average 6.59 percent from last week's 6.68 percent, and the 15-year fixed-rate mortgage fell to 6.25 percent from 6.32 percent. Points, which are fees lenders charge for loan processing expressed as a percent of the loan, averaged 0.4 on the 30- and 15-year loans.

Adjustable-rate mortgages (ARMs), however, were up this week, with the five-year Treasury-indexed hybrid ARM rising to 6.33 percent from 6.29 percent and the one-year ARM growing to 5.65 percent from 5.59 percent. Points on these loans averaged 0.5.