Average 30-year fixed mortgage at 4.97, down from 5.01

As of Thursday, the 30 year Mortgage rate dropped now lower than 5 percent, according to Freddie Mac.

One year ago, the rate for a 30-year fixed mortgage averaged 5.16 percent, Freddie Mac said. The average rate on a 30-year fixed mortgage was 4.97 percent this week, down from an average of 5.01 percent last week.

December rates were a record low at 4.71 percent. The rate has hovered in the 5 percent range, many giving credit to the Federal Reserve’s program that has put $1.25 trillion into mortgage-backed securities. These efforts have kept rates low and have made home buying, ideally, more affordable. As of March 31st, this program is set to come to an end.

Freddie Mac collects mortgage rates on Monday through Wednesday of each week from lenders around the country. Rates often fluctuate significantly, even within a given day, often in line with long-term Treasury bonds.

The average rate on 15-year fixed-rate mortgages fell to 4.34 percent from 4.40 percent last week, according to Freddie Mac.

Rates on five-year, adjustable-rate mortgages averaged 4.19 percent, down from 4.27 percent a week earlier. Rates on one-year, adjustable-rate mortgages rose to 4.33 percent from 4.22 percent.

The rates do not include add-on fees known as points. The nationwide fee for loans in Freddie Mac's survey averaged 0.7 point for 30 year mortgage. It averaged 0.6 point for 15-year, five-year and one-year loans.

These positive financing numbers also lead to an increase in refinancing activity. Upwards of 60% of all mortgage activity are home owners looking to take advantage of refinancing at more attractive rates.