Mortgage rates took a dive this week after a report showed the U.S. economy shrank quite a bit during the first part of the year. I'm Doug Whiteman with your weekly look at mortgage rates.
The benchmark 30-year fixed-rate mortgage fell to 4.28 percent from 4.33 percent last week. The 15-year fixed-rate mortgage dropped 5 basis points to 3.39 percent.
The 30-year fixed-rate jumbo tumbled to 4.31 percent from 4.38 percent.
The benchmark 5/1 adjustable-rate mortgage lost 4 basis points, coming in at 3.33 percent.
A revised estimate of the first-quarter gross domestic product shows the economy contracted at a 2.9 percent annual rate in the first three months of the year, the worst performance since the end of the recession. For investors, the report can be seen as a sign that even though the labor market seems to have improved, maybe the economy isn't doing as well as we all thought. And that's good for mortgage rates.
When investors are anxious about the economy, they tend to park their money in safer investments, such as U.S. Treasury and mortgage bonds.
With rates staying low for the time being, it's a great time to be a homebuyer. To shop for the very best mortgage rates in your area, use the free search engine at Bankrate.com. I'm Doug Whiteman.