Fixed mortgage rates inched lower over the past week, with the average conforming 30-year fixed mortgage rate now 5.95 percent. According to Bankrate.com's weekly national survey of large lenders, the average 30-year fixed mortgage has an average of 0.49 discount and origination points.

he average 15-year fixed rate mortgage popular for refinancing was up slightly, to 5.53 percent. The average jumbo 30-year fixed rate declined modestly to 7.37 percent. Adjustable mortgage rates were very mixed, with the average 1-year ARM rising to 6.25 percent while the average 5/1 ARM plunged to 6.16 percent.

It is unusual to see fixed mortgage rates lower than the rates offered to borrowers taking adjustable rate mortgages. But that is exactly the situation we are currently in, with rates on adjustable mortgages having been pushed higher in recent weeks due to a secondary market for adjustable rate mortgage- backed securities that is in disarray and being plagued by more sellers than buyers. Adjustable rate mortgages have higher instances of delinquency than fixed rate loans, and investors are exacting a price for that by commanding higher returns. This means higher rates for borrowers. Lenders not dependent upon the secondary markets are in a position to offer better terms, underscoring the need for consumers to shop around.

The mortgage rate winds can change direction quickly. Two weeks ago, the average 30-year fixed mortgage rate was 6.39 percent, meaning that a $200,000 loan would have carried a monthly payment of $1,249.70. With the average conforming 30-year fixed rate now 5.95 percent, the same $200,000 loan carries a monthly payment of $1,192.68.