Mortgage rates were mixed this week, with fixed rates falling slightly, and adjustable rates rising just a bit.

This week's drop in fixed mortgage rates coincided with a report that federal officials were discussing bailout options with Fannie Mae and Freddie Mac. With this reminder that the federal government intends to keep the mortgage market functioning, rates went down.

The average 30-year fixed-rate mortgage fell 6 basis points, to 6.6 percent. A basis point is one-hundredth of a percentage point.

The average 15-year fixed -- a popular option for refinancing -- fell 4 basis points, to 6.14 percent. The average jumbo 30-year fixed fell 1 basis point, to 7.61 percent.

The one-year adjustable-rate mortgage rose 4 basis points, to 6.28 percent. The popular 5/1 ARM rose 1 basis point, to 6.27 percent.

Mortgage applications rose slightly for the week ending Aug. 22, according to the Mortgage Bankers Association. Application activity increased a seasonally adjusted 0.5 percent from a week earlier.

Refinancing activity increased by 0.3 percent, while applications for purchases increased 0.6 percent. Refinances accounted for roughly one-third of applications.

-- Holden Lewis

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