low mortgage rates

According to Freddie Mac, mortgage rates fell again this week with a 30-year fixed rate mortgage now at an average 4.95%.

30-year fixed rate mortgages averaged 4.97% a week ago, and 5.04% a year ago.

"Mortgage rates eased for the second week, while economic data releases suggest that the housing market may be in a slow state of recovery," said Frank Nothaft, Freddie Mac vice president and chief economist, in a news release.

"The National Association of Realtors reported that existing home sales rose in 48 states and the District of Columbia between the third and fourth quarters of 2009; 32 states experienced double-digit growth. In addition, 67 metropolitan areas saw positive annual house price growth in the fourth quarter, more than double than in the third quarter, according to the NAR," he said.

Nothaft says that there are also signs that new home construction is improving.

"One-family housing starts rose to an annual pace of 484,000 homes in January, which is up almost 36% from January 2009, based on the U.S. Census figures. Moreover, homebuilder assessments of market conditions over the first half of 2010 improved in February, according to National Association of Home Builders/Wells Fargo Housing Market Index," he said.

For those looking to buy a home, this is a great time to lock in these low rates. With housing inventories still high, prices are still down. Combine that with these incredible rates and you can make one smart financial move.