Bankrate.com: Mortgage rates drop to all-time low

The benchmark 30-year fixed-rate mortgage fell 13 basis points, to 5.06 percent, according to the Bankrate.com national survey of large lenders.

That's the lowest rate on the 30-year fixed in the 24-year history of Bankrate's weekly mortgage index. Previously, the all-time low had been 5.13 percent, on April 1 this year. (In case you're wondering, the highest was 12.31 percent -- in the first-ever survey, conducted Sept. 25, 1985.)

One year ago, the mortgage index was 6.33 percent; four weeks ago, it was 5.34 percent.

The benchmark 15-year fixed-rate mortgage fell 13 basis points, to 4.48 percent. That, too, is a record low. The benchmark 5/1 adjustable-rate mortgage was unchanged, at 4.58 percent. That's a record low dating back to when Bankrate started collecting 5/1 ARM rates at the beginning of 2005. And the benchmark 30-year fixed jumbo fell 29 basis points, to 5.95 percent. It was 5.6 percent in June 2003.

PrivoCorp - the fastest contract processing company for mortgage home loans expects volumes to increase as a result of this. As it is, PrivoCorp is experiencing an increase in the volume of loans submitted as well as the value of the homes being transacted. Although this is not a scientific indicator - seems to indicate that economy is moving in the right direction (at least there is a confidence in the direction of movement).

For more information please check out the bankrate.com website.