The mortgage giant's statement was based on its survey of lenders, the second such industry survey in two days to show the rate below 5 percent, which has become a psychological trigger for homeowners refinancing mortgages.

A Mortgage Bankers Association report Wednesday said applications to refinance home loans jumped last week as the average home-loan rate dropped under 5 percent.

Freddie Mac's survey, conducted Monday through Wednesday, showed borrowers with good credit and a 20 percent equity stake in their home got 30-year loans of US$417,000 or less at an average fixed rate of 4.98 percent. The borrowers paid an average of 0.7 percent of the loan amount in upfront fees to the lender, the usual cost reflected in the Freddie Mac survey.

The average rate was down from 5.03 percent last week and from 6.2 percent a year ago.

In the Western region of the U.S., borrowers were “buying down” the average rate to 4.91 percent by paying 0.9 percent in upfront fees.