Mortgage rates are on a roll. Rates fell last week to their lowest levels seen all year. According to the latest issue of HSH’s Market Trends Newsletter, “Mortgage Rates Downshift, Match Year’s Low,” the conforming 30-year fixed rate dipped below the 5% mark.

“Although one might have thought that everyone knew that a sluggish economic recovery is on tap, a reiteration of this by Federal Reserve Chairman Ben Bernanke [last] Monday seemed to push some investors out of equities and back into bonds, driving yields and mortgage rates downward.”

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According to the latest issue of HSH’s Market Trends Newsletter, “Mortgage Rates and the ‘Unofficial’ Start of Summer,” despite entering their annual “summer lull” somewhat early this year, 30-year conforming interest rates remain more than a full percentage point below figures seen last year.

“It’s worth noting that last year’s season began in the wake of the forced takeover of Bear Stearns by JPMorgan and ended with the failure of Fannie Mae, Freddie Mac, and Lehman Bros, as well as other assorted troubles. It does seem likely that this summer will be quieter and much more stable on balance, but the economy remains troubled, if on a lessening basis.”

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According to the latest issue of HSH’s Market Trends Newsletter, “Home Loan Rates Drift Down a Little,” the anticipated economic recovery may bring inflation and higher rates along with it.

“Of course, that presupposes that the Federal Reserve will no longer be the largest component of support for the mortgage market, and that private market interests will be again asserting more influence into the price of credit. That day will come, but not yet.”

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According to the latest issue of HSH’s Market Trends Newsletter, “Rates, Economic Signals Mixed,” while an economic recovery has yet to be in our grasp, “we do seem to be trending along the bottom of the economic trough.”

“Low mortgage rates continue to promote homebuying and especially refinancing activity. This week, the overall average for long-term mortgage money as referenced by HSH’s Fixed-Rate Mortgage Indicator decreased by nine basis points (.09%) to finish the week at 5.44%. The FRMI’s 5/1 Hybrid ARM counterpart also trended down, landing at an average 5.19% for the period.”

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According to the latest issue of HSH’s Market Trends Newsletter, “Home Mortgage Rates Flare Higher,” mortgage rates rose last week, while mortgage applications fell.

“Holiday-shortened weeks such as this [past] one have not been friendly to the market over the past year or so.”

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