Rates drop to an average 6.2 percent

Rates decreased on 15 year fixed mortgages, used frequently among homeowners looking to refinance, falling from last week's average of 6.19 percent to 5.88 percent this week. Five year adjustable rates dropped to 6.19 percent from last week's 6.36 percent; and rates on one-year adjustable rate mortgages fell only .13% ending at 5.25 percent for the week.

Freddie Mac's chief economist Frank Nothaft said of the rate drop, "Mortgage rates fell this week amid new indications of a pullback in consumer spending and a weaker jobs market." Based on those two factors, decreased consumer spending and weaker jobs, investor's fears of inflation have subsided, in turn drawing mortgage rates down.