A year ago at this time most economists in the industry were projecting mortgage interest rates above 5%.

What a difference a year makes. From MarketWatch:

Long-term mortgage rates have reached their lowest level in more than a year, giving families an opportunity to secure cheap home loans, according to data released Thursday.

On the back of “underwhelming” economic news, the average rate for the popular 30-year fixed-rate mortgage just dropped to 3.89%, the lowest reading since May 2013, according to a Thursday report from federally controlled mortgage-buyer Freddie Mac FMCC, +0.42% The rate is now about half a percentage point greater than the near-record-low hit last year.

While the market is unlikely to see long-term rates revisit last year’s bottom, current low levels may stick around through January, giving families a chance to lock in affordable monthly home payments, said Frank Nothaft, Freddie’s chief economist.

“I don’t see a whole lot of movement in long-term interest rates,” Nothaft said.