Mortgage rates moved lower this week, with the average conforming 30-year fixed mortgage rate now 4.59 percent, according to Bankrate.com's weekly national survey. The average 30-year fixed mortgage has an average of 0.38 discount and origination points.

The average 15-year fixed mortgage retreated to 4.08 percent, and the larger jumbo 30-year fixed rate slipped to a new record low of 5.22 percent. Adjustable rate mortgages were lower this week, with the average 5-year ARM inching lower to 3.85 percent and the average 3-year ARM slipping to 4.13 percent.

A larger than expected decline in July home sales fueled more worries about the path of the economy and fears of deflation. Economic growth and deflation concerns are the two catalysts behind the notable declines in mortgage rates since Spring. From a refinancing or home purchase standpoint, fixed mortgage rates offer very affordable payments. Would-be borrowers are still reluctant given the weak job market, lack of home equity, and higher down payment requirements.

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 4.59 percent, the monthly payment for the same size loan would be $1,024.09, a savings of $191 per month for a homeowner refinancing now.

SURVEY RESULTS

30-year fixed: 4.59% - down from 4.63% last week (avg. points: 0.38)

15-year fixed: 4.08% - down from 4.11% last week (avg. points: 0.40)

5/1 ARM: 3.85% - down from 3.95% last week (avg. points: 0.31)