Interest rates continue to drop for 30-year fixed rate mortgages!  The record low in December 2009 of 4.71% is still holding firm, however this weeks rates fell to 4.93%, according to mortgage giant, Freddie Mac.

Mortgage rates are collected on Monday through Wednesday from lenders on a weekly basis by Freddie Mac, and can fluctuate drastically even on a daily basis, as they are closely tied in with Treasury bonds.

The FED has pumped $1.25 trillion in buying mortgage backed securities, which has in turn kept the rates around 5%, however that program is scheduled to expire on March 30, 2010, leaving many analysts to believe that the mortgage rates could rise significantly.

Edward DeMarco, Acting Director of the Federal Housing Finance Agency, has a different outlook.  DeMarco believes that private investors will be “stepping in” and that the rate decrease is a positive sign.