The average conforming 30-year fixed mortgage decreased this week to 5.26 percent, according to Bankrate.com's weekly national survey. The average 30-year fixed mortgage has an average of 0.43 discount and origination points.

The average 15-year fixed mortgage fell to 4.67 percent while the larger jumbo 30-year fixed rate inched lower to 6.14 percent. Adjustable rate mortgages were mixed, with the average 3-year ARM rising to 4.80 percent and the 5-year ARM dropping to 4.74 percent.

Mortgage rates started off 2010 by breaking a streak of five weekly increases. Optimism about the economy was the driving force behind December's increase in mortgage rates, and heightened demand for the now higher-yielding mortgage-backed and government issued debt helped bring rates lower this week. Mortgage rates are closely related to yields on long-term Treasury securities and mortgage-backed bonds. The risks are clearly tilted toward higher mortgage rates in 2010 as continued improvement in the economy and a return to job growth are both consistent with higher - not lower - mortgage rates.

The last time mortgage rates were above 6 percent was Nov. 2008. At that time, the average rate was 6.33 percent, meaning a $200,000 loan would have carried a monthly payment of $1,241.86. With the average rate now 5.26 percent, the monthly payment for the same size loan would be $1,105.65, a savings of $136 per month for a homeowner refinancing now.

SURVEY RESULTS

30-year fixed: 5.26% - down from 5.33% last week (avg. points: 0.43)

15-year fixed: 4.67% - down from 4.73% last week (avg. points: 0.43)

5/1 ARM: 4.74% - down from 4.77% last week (avg. points: 0.40)