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. 0 G+ R8 w! N' ?& S: l2 h( p2 M
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. ! {4 i$ r8 p) r/ P6 e& K( h/ p
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. . C  x7 l; Y( \, z0 O7 j
Mortgage rates tend to track the yield on the 10-year Treasury note, which fell below 1.9 percent this week. 2 X2 Z! a& y4 T0 ~
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. & M2 v# Y$ N% \9 w& Q. c* h/ [" 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. : i  ^& B$ z1 p7 C4 o
Sales of previously occupied homes were dismal last year. New-home sales in 2011 were the worst on records going back half a century.
$ U6 e9 b* _% l1 w' `# nBuilders 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.
, d: B+ c& B; W  Y2 a7 JTo calculate the average rates, Freddie Mac surveys lenders across the country Monday through Wednesday of each week. ( F. H. D: Y8 F1 [3 X2 V
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. + J" p* D. w8 \. L4 }  A
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.
9 c' [/ U' O) m* A6 VFor 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. & O# a( b% Q5 P( z
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.