Record-Low Mortgage Rates Continue to Fall
Another week, another record for low mortgage rates.
Freddie Mac reported Thursday that average rates for home loans have fallen to their lowest levels since the agency began tracking numbers in 1971.
The average rate for a 30-year, fixed-rate mortgage dropped to 4.44 percent this week, down from last week's 4.49 percent. Rates on a 15-year, fixed-rate mortgage dropped to 3.92 percent, also a record low.
Despite the low rates, there hasn't been a rush to purchase homes or to refinance. Home loan applications rose just 0.6 percent last week, according to Mortgage Bankers Association figures.
"Whether on-the-fence homebuyers and potential refinancers will soon take advantage of the historic opportunities presented by the lowest mortgage rates in five decades remains to be seen, but we're not counting on a change anytime soon," Freddie Mac said in a statement.
But there were some positive signs.
"Low rates are helping to heal many battered local housing markets by increasing home-purchase activity," Freddie Mac said. "The National Association of Realtors reported that 65 percent of the 155 metropolitan areas they track experienced yearly increases in the second quarter of this year. This compares to 60 percent of areas in the first quarter and only 44 percent in the fourth quarter of 2009."
