In accordance to the Freddie Mac's weekly survey, home-mortgage rates have reduced this week, with the third consecutive decline pushing the average for 30-year fixed-rate loans back below 5%.

The decrease in home-mortgage rates is fuelled by the decline in treasury yields.

In addition, a separate survey report issued by the Mortgage Bankers Association on Wednesday depict that the volume of mortgage applications rose a seasonally adjusted 9.1% last week, compared with the week before.

The 30-year fixed-rate mortgage averaged 4.99% for the week ended Thursday, down from last week's 5.06% average and 5.12% a year ago. Rates for 15-year fixed-rate mortgages were 4.4%, down from 4.45% and 4.8%, respectively.

Also, the Five-year Treasury-indexed hybrid adjustable-rate mortgages reported to be on an average 4.27%, down from last week's 4.32% and 5.24% a year earlier.

Moreover, rates on 15-year fixed-rate loans and adjustable-rate mortgages, or ARMs, witnessed a decline this week, revealed the survey.

Frank Nothaft, Freddie Mac vice president and chief economist, said in a news release: "ARM rates eased along with shorter-term rates, as the federal funds futures market indicates no increase in the Federal Reserve's target rate following its upcoming committee meeting on January 26 and 27."