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. . `' V2 G6 [2 C
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.
7 k8 K7 ^* @+ M( x! wThe 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. 3 u! l$ ~, `, g! U3 E- N
Mortgage rates tend to track the yield on the 10-year Treasury note, which fell below 1.9 percent this week. ; a, X6 X) M$ L* b' V2 Y
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.
2 T- {1 _# E7 s% [: n5 VHigh 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.
+ R% d8 |; d" `5 ^7 m5 t! h% }, @1 YSales of previously occupied homes were dismal last year. New-home sales in 2011 were the worst on records going back half a century. $ R  o; h, r, Z, o3 t) l( m
Builders are hopeful that the low rates could boost sales next year. But so far, they have had a minimal impact.
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6 {& j& h8 u6 a, _0 a4 ~8 u: M7 }7 Z& GMortgage applications have risen slightly over the past four weeks, according to the Mortgage Bankers Association. But they are coming off extremely low levels. . {9 O1 r  t* O- z+ M0 m+ Y
To calculate the average rates, Freddie Mac surveys lenders across the country Monday through Wednesday of each week. 1 y* H3 h- U1 ]
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. ( A2 K% z. h) i) q" z6 j5 K
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.
- x& O+ E" b) S0 L' V0 P$ NFor 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. $ Z5 C9 O- S( J
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.