Despite the belief that the interest rates would not fall below 5% any time in the near future; they have! According to mortgage giant, Freddie Mac, fixed rates on a 30-year mortgage have fallen to 4.99%!

Freddie Mac collects mortgage rates from lenders across the nation on a weekly basis. The interest rates can fluctuate drastically from week to week, even on a daily basis, as they tend to coincide with treasury bonds.

The FED started pumping $1.25 trillion dollars into mortgage-backed securities over the last year, in an attempt to keep the mortgage rates attractive to potential homebuyers as well as those looking to refinance. The program is set to expire in the spring and while there is talk that the program could be extended, analysts believe that this is an unlikely scenario.

In the meantime, the rates may be higher than the record low of 4.71% set in December; they are still lower than the market has seen in years!