I'm Greg McBride with Bankrate.com and here is your weekly look at mortgage rates.
Mortgage rates reversed course this week, just one week after hitting a 4-month high. The benchmark 30-year fixed mortgage rate retreated to 3.6 percent, while the average 15-year fixed mortgage pulled back to 2.89 percent. The larger jumbo 30-year fixed mortgage rate dropped to 4.04 percent.
Adjustable rate mortgages were lower across the board. The popular 5-year ARM slid to 2.74 percent and the 7-year ARM sank to 2.88 percent. These loans are particularly appealing to borrowers that don't expect to be in their homes forever, with the loan functioning as a fixed rate loan during the period of time they occupy the home, but at a substantial savings compared to a traditional fixed rate mortgage.
The glow of the fiscal cliff deal is beginning to wear off, with mortgage rates now sliding back after a run-up to start the year. Although the recent economic data has been pretty positive, the pace of the decline will likely pick up as nervousness about the debt ceiling debate increases.
Be sure to shop around for the best mortgage terms. To find the lowest mortgage rates in your area, use the free search engine at Bankrate.com.
I'm Greg McBride.