Rate on 30-year mortgage falls to record 3.87 pct.

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WASHINGTON (AP) -- The average rate on the 30-year fixed mortgage fell this week to a record low, the ninth time that has happened in the last year. Even with the cheapest rates in history, the housing market remains depressed. 5 I3 G9 Z+ U6 H; g# h7 o, w
Mortgage buyer Freddie Mac said Thursday that the rate on the 30-year loan dropped to 3.87 percent this week. That below the previous record of 3.88 hit two weeks ago.
; i( t5 s% J8 X, X$ s- tThe average on the 15-year fixed mortgage fell to 3.14 percent, also a record low. Records for mortgage rates date back to the 1950s.
# I8 J4 Z4 E9 N( b7 t% sMortgage rates tend to track the yield on the 10-year Treasury note, which fell below 1.9 percent this week.
9 ~+ I& N# a4 [$ a: \Rates have been low for more than a year, and the average rate on the 30-year loan has hovered near 4 percent for more than three months. Yet few people can afford to buy a home or qualify for a loan. Those who can have already done so. 1 G8 l7 S0 W/ C$ T' a, [6 k) B7 p
High unemployment and scant wage gains have made it harder for many people to qualify for loans. Many don't want to sink money into a home that they fear could lose value over the next few years. ) Z) s3 P% z0 u
Sales of previously occupied homes were dismal last year. New-home sales in 2011 were the worst on records going back half a century.
8 j% j; x/ T1 o( k; @* Q8 EBuilders are hopeful that the low rates could boost sales next year. But so far, they have had a minimal impact.
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Mortgage applications have risen slightly over the past four weeks, according to the Mortgage Bankers Association. But they are coming off extremely low levels.
, w% Z* q0 t% |8 U* n/ ITo calculate the average rates, Freddie Mac surveys lenders across the country Monday through Wednesday of each week.   @' v) `& _1 \
The average rates don't include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount.
8 `3 n- h5 K6 p. a" MThe average fee for the 30-year loan rose to 0.8 from 0.7; the average on the 15-year fixed mortgage was unchanged at 0.8. 4 V& _+ ?6 o0 D, M3 p$ \( D
For the five-year adjustable loan, the average rate fell to 2.80 percent from 2.85 percent. The average on the one-year adjustable loan rose to 2.76 percent from 2.74 percent.
" L) G# e, v& Q/ j8 CThe average fee on the five-year adjustable loan rose was unchanged at 0.7; the average on the one-year adjustable-rate loan was unchanged at 0.6.