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

super

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.
+ c+ X& K: N9 K, f1 F: m) g8 U' Y: HMortgage 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. 9 F6 Z  e+ A& m9 F; }# t9 R* k
The 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.
. u3 v5 g1 Z# D$ [* BMortgage rates tend to track the yield on the 10-year Treasury note, which fell below 1.9 percent this week. ' S0 W4 {4 ]/ w" e
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. ! U1 c1 D6 m. H3 h- X4 i' w
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. 5 A( T6 K2 `# K+ c
Sales of previously occupied homes were dismal last year. New-home sales in 2011 were the worst on records going back half a century. 3 h0 w, k7 V. |/ `
Builders are hopeful that the low rates could boost sales next year. But so far, they have had a minimal impact.
* a- {$ t: S6 ^+ X$ B7 |, Z( D, w' n0 @; O! i& F6 c
Mortgage applications have risen slightly over the past four weeks, according to the Mortgage Bankers Association. But they are coming off extremely low levels.
( F- a  a- n% FTo calculate the average rates, Freddie Mac surveys lenders across the country Monday through Wednesday of each week.
5 `* Q5 v, J# A( T; X  yThe 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.
/ u7 x9 H0 i- @( v$ d7 _4 f0 \- _The 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.
/ Q% H. R5 U8 V  `2 JFor 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. ) J$ o# R& H% F
The 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.