30 Year Mortgage Rate Reported Below 5% Although Hard to Find

Freddie Mac's weekly survey says that the rate on a 30 year fixed rate loan has fallen below 5% for the first time ever. According to the survey the national average rate on the 30-year loan fell to 4.96% in the week ending Jan. 15, down from 5.01% a week ago. Freddie Mac began tracking rates in 1971. A year ago the loan averaged 5.69%. According to the survey, to get the rate you'll have to pay at least 1 point.

The 15 year rate, a popular term for refinancing actually rose from 4.62% to 4.65%.

These rates are low but may be difficult for many people to get. Consumers face several obstacles:

First, a shopper has to find a bank that is offering rates this low. A quick perusal of rates on the Web showed very few banks offering rates below 5%.

Then, consumers have to qualify for the loan. These low rates are only available to non-jumbo loans and only to those with the highest credit ratings.

If a homeowner is thinking of refinancing, they'll have to have positive equity in their home, something that many don't have.

The bottom line: The Fed is taking unprecedented steps to lower rates and it is working. You may have a difficult time getting the lowest rate, but who can complain with a 5% rate. And as the economy continues to weaken and the Fed looks for more remedies, expect rates to come down further.