Mortgage rates fell the most since December 2008 amid growing fears of a recession

According to data released by Freddie Mac on Thursday, a 30-year fixed-rate mortgage averaged 5.3% for the week ended July 7. This is 40 basis points less than in the previous week – one basis point is equal to one hundredth of a percentage point, or 1% of 1%.

The average rate on a 15-year fixed-rate mortgage fell 38 basis points over the past week to 4.45%. The Treasury-indexed 5-year adjustable-rate hybrid mortgage averaged 4.19%, down 31 basis points from the previous week.

"Over the past two weeks, 30-year fixed-rate mortgages have fallen by half a percentage point as concerns about a potential recession continue to grow," Sam Khater, chief economist at Freddie Mac, said in a news release.

"While the fall brings little relief to buyers, the housing market will continue to normalize if house price growth slows substantially due to a combination of low housing affordability and an expected economic downturn," he added.

Falling rates, along with a 5.4% drop in mortgage applications for the week ending July 1, are indicative of a broader cooling in the housing market.