Mortgage rates ease

Bankrate says the average 30-year fixed rate home loan now stands at its second lowest level on record.

By Ben Rooney, CNNMoney.com staff writer


NEW YORK (CNNMoney.com) -- Mortgage rates fell slightly this week and appear to be settling into a range near historically low levels, according to a national survey released Thursday.

Bankrate.com, an online aggregator of various types of interest rates, said 30-year fixed mortgages averaged 5.18% this week, down from 5.2% the week before. Rates on 15-year fixed mortgages fell to 4.72% from 4.75%.

The average jumbo 30-year fixed rate fell to 6.69%. Adjustable rate mortgages were mixed. The average 1-year ARM rose to 5.28%, while 5/1 ARMs sank to 5.12%.

Mortgage rates remain at historic lows. In the nearly 24-year history of Bankrate's weekly rate survey, the 30-year fixed has been lower just once -- two weeks ago, when it averaged 5.13%.

Still, rates have held relatively steady over the past few weeks as lenders respond to a surge in mortgage applications, particularly refinancing activity. That has helped offset ongoing sings of weakness in the economy, which would normally push rates lower, according to Bankrate.

"The ailing economy and inundated lenders are the two factors that will likely keep mortgage rates rangebound in the weeks to come," Bankrate said in a report.

Bankrate's national weekly mortgage survey is based on data provided by the top 10 banks and thrifts in the top 10 markets. To top of page