Mortgage rates fell again this week, according to Freddie Mac’s weekly national survey. The average rate on 30-year fixed mortgages fell to 4.97% from 5.05%. The average rate on 15-year fixed mortgages declined from 4.4% to 4.33%. Adjustable rate mortgages (ARM) were also lower this week, with the average 3-year ARM falling to 4.43% while the five-year ARM fell to a record low of 4.46%. 

The decline in mortgage rates is believed to be a result of the higher-than-expected unemployment numbers. New and existing home sales also dropped recently due to the cold weather spell, with new-home sales declining by as much as 11%.

In November 2008, just before the Federal Reserve began its $1.25 trillion program, the mortgage rates were above 6%. As the Federal Reserve discontinues its purchase program of mortgage-backed securities, mortgage rates are expected to inch up over the next few weeks.