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.
$ n& D: }6 u- c2 ?7 w! a' F& ~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. ( k! u1 R- P. f
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.
4 ^- O: g5 a# H+ l0 n* b8 c$ m$ jMortgage rates tend to track the yield on the 10-year Treasury note, which fell below 1.9 percent this week. 3 M0 b2 _' ~' i5 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.
% f$ n) ]# y! U- X' V7 YHigh 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. / H- j- y- R: `$ q9 l( M0 B/ h
Sales of previously occupied homes were dismal last year. New-home sales in 2011 were the worst on records going back half a century. 2 o+ G( G! [4 M0 l. U* Y
Builders are hopeful that the low rates could boost sales next year. But so far, they have had a minimal impact.
. V# p0 W1 i8 g- F' _- O: I) ]- U/ w0 n# D1 ?  `# C$ v- k
Mortgage applications have risen slightly over the past four weeks, according to the Mortgage Bankers Association. But they are coming off extremely low levels.
* |% E4 U' S1 n( Q$ \" S, uTo calculate the average rates, Freddie Mac surveys lenders across the country Monday through Wednesday of each week. " B5 o+ z* o$ }1 g7 R; \* r: \
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. 3 G) K/ ^; }4 J; ]- P
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. 4 x; H8 |# K' ?  h
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. + J0 S1 H( J3 o& Q) l
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.