As long as lousy economic news continues to blare from headlines and televisions, mortgage rates will have at least some downward pressure. And, in fact, the average 30-year fixed might just fall below 5% this week. But with the lag of data being released (often a month or more after the fact) and with October and especially November proven to be truly awful months, the question is: Did December fare any better?

Well, “better” is a relative term.

This week, the average overall 30-year fixed-rate mortgage tracked lower. HSH’s Fixed-Rate Mortgage Indicator (inclusive of conforming, jumbo and ‘expanded conforming’ interest rates) slipped a sharp 17 basis points, landing at an average 5.72%. The combined averages seen in the FRMI have a long history and this is the lowest such rate since the week ending July 1, 2005. The FRMI’s 5/1 Hybrid ARM counterpart finished the week unchanged at 5.80%.

Aside from jumbo borrowers, who must at least consider them due to the still-high rates found on jumbo fixed-rate products, ARMs remain well out of favor among consumers in the present environment.

Conforming rates led the downward charge this week — the daily average for a 30-year conforming FRM landed at 5.05% on Friday, besting the previous daily low of 5.06% seen on December 17 — but jumbo rates are trending downward, too, with the average 30-year Jumbo FRM now standing at 6.82%, the lowest such rate since nearly a year ago.

Some of the influence on mortgage interest rates came as the Fed began its previously announced program to buy up mortgage-backed securities in the open market place. Reports indicated that the Fed picked up some $10 billion worth of MBS to start the year, lending some support to the market. It also appears that some investors have shed their protective positions in Treasuries in favor of slightly riskier investments, if the 25-basis point rise in the 10-year yield since the year’s beginning (while mortgage rates have declined) is any indication.