Mortgage rates pulled back sharply this week, with the average 30-year fixed mortgage rate falling to 5.76 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 rate mortgage sank to 5.19 percent, while the average jumbo 30-year fixed rate inched higher to 6.97 percent. Adjustable rate mortgages were mixed, with the average 3-year ARM rising to 5.38 percent and the 5-year ARM dropping to 5.37 percent.

Mortgage rates retreated after a hefty run-up that had 30-year fixed mortgage rates flirting with the 6 percent mark. The concerns about eventual inflation that drove bond yields and mortgage rates higher have been tempered by the reality of continued weakness in the economy. Given the long road ahead economically, investors saw value in fixed income instruments like government bonds and mortgage-backed debt after rates had spiked upward. This helped bring mortgage rates back down and re-open the door to refinancing for homeowners that thought it had closed just a couple weeks ago. Mortgage rates are closely related to yields on long-term government debt.

Mortgage rates, though higher than in recent months, are significantly lower than one year ago. This time last year, the average 30-year fixed mortgage rate was 6.62 percent, meaning a $200,000 loan would have carried a monthly payment of $1,279.96. With the average rate now 5.76 percent, the monthly payment for the same size loan would be $1,168.42, a savings of $111 per month for a homeowner refinancing now.

SURVEY RESULTS

30-year fixed: 5.76% - down from 5.95% last week (avg. points: 0.43)

15-year fixed: 5.19% - down from 5.37% last week (avg. points: 0.37)

5/1 ARM: 5.37% - down from 5.49% last week (avg. points: 0.4)