Economic worries continue to lead to lower mortgage rates, with the average conforming 30-year fixed mortgage rate now 5.88 percent. According to Bankrate.com's weekly national survey of large lenders, the average 30-year fixed mortgage has an average of 0.35 discount and origination points.

The average 15-year fixed rate mortgage popular for refinancing plummeted to 5.45 percent, and the average jumbo 30-year fixed rate sank to 7.03 percent. Adjustable mortgage rates were lower also, with the average one-year ARM dipping to 6.03 percent, and the average 5/1 ARM diving to 5.81 percent.

Mortgage rates have declined nearly one-half percentage point since Christmas as economic worries mount. This is the biggest two-week decline in mortgage rates since May 1995. While declining new home sales and weaker economic indicators got things started, a disappointing employment report added fuel to mortgage rates' decline. Worries about the economy typically prompt investors to park money in safe havens such as Treasury securities. Fixed mortgage rates are closely related to yields on long-term government bonds. While the focus on weaker economic growth and a possible recession have pushed mortgage rates lower, several Fed speeches and inflation releases loom in the next week that could halt the decline.

Fixed rate mortgages are currently the most attractive option for borrowers. Just two weeks ago, the average 30-year fixed mortgage rate was 6.31 percent, meaning that a $200,000 loan would have carried a monthly payment of $1,239.25. Now that the average conforming 30-year fixed rate is 5.88 percent, the same $200,000 loan carries a monthly payment of $1,183.71.