According to mortgage giant, Freddie Mac, mortgage rates for a 30 year fixed rate mortgage fell to the lowest point so far this year. After economic concerns regarding the expiration of the FED program that was pumping 1.25 billion into mortgage backed securities keeping the rates at or around 5%, the rates dropped to an unexpected 4.93% this week.

Analysts believe that investors began moving money from European debt to U.S. securities after fears that Greece's government would default. As a result, bond yields fell, resulting in the lower mortgage rates that we see today. Greg McBride, the Senior Financial Analyst at Bankrate.com stated, "In times of nervousness, everybody seeks the safe haven."

Rates have not dropped this far since the end of March 2010, right before the FED program expired. As mortgage rates are closely tied to long term treasury bonds, rates can change significantly even on a given day.