Mortgage rates slide
The 30-year fixed rate falls to 5.34%, as investors trade stocks for Treasurys following unveiling of bank bailout plan.
NEW YORK (CNNMoney.com) -- Mortgage rates fell during the past week, pushed lower from the uncertainty stemming from the bank bailout plan unveiled Tuesday.
The average 30-year fixed mortgage rate fell to 5.34% from 5.70% for the week ended Feb. 11, according to Bankrate.com.
The average 15-year fixed rate mortgage sank to 5.03% from 5.31%, and the average jumbo 30-year fixed rate slipped to 6.98% from 7.12%.
Adjustable rate mortgages also dropped over the past week, with the average 1-year ARM falling to 5.67% from 5.73% and the 5/1 ARM sinking to 5.37% from 5.5%.
Mortgage rates edged off the six-week high set the week of Feb. 4, helped by investor skepticism of Treasury Secretary Tim Geithner's plan to attack the financial meltdown. Jittery investors sold stocks and bought Treasurys, lowering the yields and pulling down mortgage rates, according to Greg McBride, senior financial analyst at Bankrate.com.
"We're going to continue to see volatility in mortgage rates between 5% and 6%. There's a tug of war between the Fed and the Treasury trying to push rates lower, and the volume of government debt issuances that pushes rates higher," McBride said.