WASHINGTON- 30-year fixed mortgage rates drop to 4.93% for the second straight week, showed by a report on Thursday, but still are above than the lower record of last years. 

This week, the average rate on a 30-year mortgage was recorded 4.93% that was 4.97% a week earlier, stated by Freddie Mac mortgage finance company.

In the beginning of December, a drop in the rates recorded to low of 4.71%, drooped in the response of government’s campaign to shrink the borrowing costs of consumer.

Mortgage rates were collected by Freddie Mac from Monday to Wednesday every week from the lenders of the whole country. Fluctuations occur on rates even on the same given day and often in line with Treasury bonds (long-term).

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The US Treasury Department may initiate its program in order to encourage purchases of mortgage-backed securities from banks with about $20 billion in public and private money. This has been down as much as $100 billion from what it was announced in March, it was said by two people who were familiar with the matter.

The treasury has planned to provide $1.1 billion in capital to eight to 10 money managers which it will pick for the Public-Private Investment Program, according to the people, who have asked that it should not be identified before the details are announced. $1.1 billion each will be raised by the firms for funds to buy distressed mortgage securities. This is less than what they had expected from the government to support. About $10 billion in government-backed loans is also included in the plan.

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