Mortgage rates fall for the first time in seven weeks

U.S. mortgage rates dropped for the first time in seven weeks last week in what some are calling a "temporary move" that will probably be followed by bond purchasing cutbacks by the Federal Reserve over signs of an improving economy.

Virginia-based Freddie Mac (FMCC) said in a statement that the average rate for a 30-year mortgage fell to 3.93 percent from 3.98 percent while the average 15-year rate fell to 3.04 percent from 3.1 percent.

Fed Chairman Ben Bernanke said Wednesday that the central bank could begin to cut back on its asset purchasing program by the end of 2013 as risks to the economy have decreased.

As Businessweek points out, 30-year mortgage rates have been on the rise since April 2012 over fears and speculation that the stimulus may be reduced, thus increasing borrowing cost for homebuyers "as competition for a tight inventory of properties pushes up prices."