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 f, W3 r$ }) T5 ^/ W+ U" [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.
6 e, {) S2 P* I0 |$ XThe 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. : y; P) w+ [! m
Mortgage rates tend to track the yield on the 10-year Treasury note, which fell below 1.9 percent this week. # |2 F6 O0 G$ d6 `- T: `& N- l! Q
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.
' d7 M8 s* S- j; e( g4 c' T) EHigh 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.
0 V0 B$ a" T) r- g0 B5 \+ _Sales of previously occupied homes were dismal last year. New-home sales in 2011 were the worst on records going back half a century. $ B7 V& |& e6 p; F& ~) {
Builders are hopeful that the low rates could boost sales next year. But so far, they have had a minimal impact. 2 D+ @3 t2 z9 U' E1 q

2 v6 \5 @* q6 b" _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/ Z+ n; @2 A- STo calculate the average rates, Freddie Mac surveys lenders across the country Monday through Wednesday of each week.
8 A$ V) O: ^$ B# B5 B" Z3 T' t. MThe 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. 0 {% d% S1 D+ y; `; T5 G1 ]% h- 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. * |7 ^6 m4 g- G& S4 B5 V
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.
7 C9 `* M' p( m) P2 T: J: p; A/ `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.