The average 30-year fixed mortgage rate pulled back to 5.70 percent this week, according to Bankrate.com's weekly national survey. The average 30-year fixed mortgage has an average of 0.48 discount and origination points.

The average 15-year fixed rate mortgage retreated to 5.07 percent, while the average jumbo 30-year fixed rate fell below the 7 percent mark to 6.91 percent. Adjustable rate mortgages were mixed, with the average 1-year ARM rising to 5.17 percent and the 5-year ARM dropping to 5.17 percent.

Mortgage rates have retreated to levels last seen one month ago as evidence mounts of continued economic weakness. In the past several days, elevated unemployment claims, news that the economy contracted at an annual rate of 5.5 percent in the first three months of the year, and consumers increasing saving faster than spending, all contributed to a decline in government bond yields and mortgage rates. Fixed mortgage rates are closely related to yields on long-term government debt. Mortgage rates are likely to bob up and down as concerns alternate between economic weakness and future inflation, and spurts of volatility should be expected, especially given the uncertain economic and financial climate.

Mortgage rates are still much lower than one year ago. This time last year, the average 30-year fixed mortgage rate was 6.53 percent, meaning a $200,000 loan would have carried a monthly payment of $1,268.08. With the average rate now 5.70 percent, the monthly payment for the same size loan would be $1,160.80, a savings of $108 per month for a homeowner refinancing now.

SURVEY RESULTS

30-year fixed: 5.7% - down from 5.8% last week (avg. points: 0.48)
15-year fixed: 5.07% - down from 5.16% last week (avg. points: 0.4)
5/1 ARM: 5.17% - down from 5.26% last week (avg. points: 0.45)