According to a weekly survey of mortgage rates by Freddie Mac., mortgage rates in the United States plunged this week.

Surveyor Freddie Mac found that the average thirty year rate plunged to 5.32 % from 5.42 %. The fifteen year rate was recorded at 4.77 %, down from 4.87% last week.

5-year treasury-indexed hybrid adjustable-rate mortgages were recorded at 4.88%, down from 4.99% last week.

Donald Rissmiller, chief economist at New York's Strategas Research Partners said that mortgage rates have returned to a point where they were a month ago.

The Fed bank last week reserved the benchmark rate for federal funds at between zero and 0.25 percent. It is worth mentioning here that mortgage rates started rising in May along with Treasury yields.

Mortgage applications in the country plunged last week by the most since February. Purchase applications recorded a drop of 4.5 % while refinancing applications dropped 30 %.