Mortgage rates on a 30-year fixed rate mortgage dropped this week from 4.39% to 4.32% in an weekly comparison, according to mortgage giant, Freddie Mac. The average rate on a 15-year fixed rate mortgage also dropped this week to a record low of 3.50%, from 3.54% the week before.

Mortgage rates tend to follow long term Treasury bonds, and as the U.S. economy continues to weaken, investors are shifting funds from stocks to "safer" bonds; this shift is pushing Treasury yields to historic lows. Freddie Mac collects mortgage rates weekly Monday through Wednesday, since the rates tend to track Treasury bonds they can change significantly, even on a given day.

Low mortgage rates are typically attractive in the real estate market, especially with those looking to refinance, however, with the rising unemployment rate across the nation, falling house prices and the tightening of the lending standards, the low mortgage rates have done very little to aid in the struggling real estate market.

Rates do not include extra fees also known as points. One point is equal to 1% of the total loan amount.