It’s been another great week for those looking to refinance or purchase a home, as mortgage rates have dropped below 5% again! Mortgage rates were 5.05% last week, coming in at 4.97% this week, the mortgage rates on a 30-year fixed rate mortgage have dropped to a level that was unexpected by many economists.

Mortgage giant, Freddie Mac collects mortgage rates Monday through Wednesday each week, from national lenders.  As rates are closely tied in with treasury bonds, it is not uncommon for them to fluctuate significantly even from day to day.

The FED has pumped $1.25 trillion into mortgage backed securities in an effort to keep the mortgage rates at or around 5%.  This program is set to expire at the end of this month; however there has been talk about extending the program, if the economy weakens.