As per figures made public by Freddie Mac's weekly survey, mortgage rates saw a decline for the week, once again, and the average rate on a 30-year fixed-rate mortgage fell to its lowest level in
38 long years.

"Interest rates for 30-year and 15-year fixed-rate mortgages fell for the fifth consecutive week to an all-time low while the average rate on five-year (adjustable-rate mortgages) hovered near its record set in the previous week", shared Frank Nothaft, Freddie's Chief Economist.

The rising number of foreclosures and fall in the housing demand has managed to pull mortgage rates down. Treasury prices, on the other hand, have recorded a surge, indicating that investors and financial centers are not willing to take any risks for the time being. This has pulled down the yields, which in turn nudged mortgage rates lower.

For the week up-to Thursday, mortgage rates on a 30-year fixed-rate loan averaged about 4.71%, a marginal fall from last week's rate of 4.78%, and a substantial decline from the figure of 5.53% recorded last year for the same period. Mortgage rates on 15-year-fixed loans also fell to 4.27% from last week's 4.29%, and last year's 5.77%.

Treasury indexed Adjustable-Rate Mortgages, on the other hand, averaged at 4.19%, a rise from the previous week's figure of 4.18%, but down from last year's 5.77%.