The average rate on a 30-year fixed mortgage fell to its lowest level all year during this week, according to Freddie Mac (NYSE: FRE). The average rate on the fixed rate home loan was 4.93 percent, down from 5 percent a week ago. That marks the lowest level since December of 2009 when the 30-year fixed mortgage fell to 4.81 percent.
This week’s drop in mortgage rates was led by a falling yield on Treasury bonds, which are generally used as a benchmark for rates on home loans.
Many economists has questioned whether mortgage rates would remain low as the Federal Reserve exited its buying programs related to mortgage backed assets, wondering who would replace demand for the securities, and if higher yields would need to be offered to entice those new investors.
The average rate on a 15-year fixed rate mortgage fell to 4.3 percent from 4.36 percent last week.
The information was released by Freddie Mac on Thursday and is comprised of data collected from Monday to Wednesday of the current week.
