Fed's confidence about inflation keeps rates low

Rates on 30-year mortgages fell for a second straight week as bond investors expressed relief that the Federal Reserve has not grown overly concerned about inflation pressures.

In its weekly nationwide survey, mortgage giant Freddie Mac reported that rates on 30-year, fixed-rate mortgages averaged 5.91 percent last week, down from 5.93 percent a week earlier.

It was the second straight decline since rates at the end of March hit 6.04 percent, the highest they had been since last July.

Analysts attributed the decline to the release of minutes of the Fed's March 22 meeting.

Rates on 15-year, fixed-rate mortgages, a popular option for refinancing, fell to 5.46 percent, down from 5.48 percent last week.

Rates on one-year adjustable-rate mortgages bucked the downward trend and actually rose slightly to 4.30 percent, up from 4.23 percent.

Five-year hybrid adjustable rate mortgages averaged 5.31 percent, down from 5.33 percent. These hybrid mortgages have a fixed-rate for five years and then adjust each year after that.

The nationwide averages for mortgage rates do not include add-on fees known as points. All mortgage categories except one-year ARMS carried a 0.7 point fee this week. The one-year ARM carried a slightly lower 0.6 point fee.