I'm Lucas Wysocki with your weekly look at mortgage rates. Investor nervousness over the looming fiscal cliff caused mortgage rates to drive lower this week. The average rate on a 30-year fixed rate mortgage dropped 3 basis points to 3.54 percent. While the 15-year fixed-rate mortgage, popular for refinancing dropped one point to 2.87 percent. For a jumbo 30-year fixed rate loan, the interest rate fell to 4.06 percent.
On the adjustable side, the 5/1 ARM sat still at 2.72 percent.
With the looming fiscal cliff still unresolved, investors are harboring their money in safe-haven US government bonds. Government bonds are closely linked to mortgage rates, hence the lower rates in our survey this week.
Now, no matter how low the average mortgage rate is, it remains important to shop around. Just a few points difference could save you hundreds or thousands over the course of your loan. You can shop for the best rate right here at Bankrate.com. I'm Lucas Wysocki.