Mortgage rates dropped to new record lows ... again, amid Europe's continuing debt crisis. The 30-year fixed-rate mortgage is down 3-basis points to 3.94 percent ... while the 15-year fixed-rate mortgage is down 4 basis points to 3.15 percent.
The average rate for 30-year jumbo mortgages rose 2 basis points to 4.54 percent.
The 5 year adjustable-rate mortgage fell 1 basis point to 3.01 percent.
The volume of mortgage applications decreased 1.3 percent last week, compared to one week earlier, according to the Mortgage Bankers Association.
Lower mortgage rates are great for potential homebuyers, but they also signal the nervousness surrounding Europe's economy ... with particular worry regarding Spain's fragile banking system. Standard & Poor recently slashed the credit ratings of five Spanish banks, and said the country could be headed into a double-dip recession. As long as nervousness persists, mortgage rates will remain at ultra-low levels.
Whether you're buying a home or refinancing the one you already own, it is important to shop around for the best deal. To find the lowest mortgage rates in your area, use the free search engine at Bankrate.com. I'm Kristin Arnold.