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.
6 R) G* ^; q1 w- n% g% p& 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. ! p* j5 R6 z* Q% c" k, b( d
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. ; b* K& L$ u& k$ i
Mortgage rates tend to track the yield on the 10-year Treasury note, which fell below 1.9 percent this week. + s6 A* o# u  D0 t* c4 Q1 {
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. % G2 G2 i) U# [
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. , A  Q- G; `3 H+ O6 u
Sales of previously occupied homes were dismal last year. New-home sales in 2011 were the worst on records going back half a century. - l4 `$ k* M" c, e
Builders are hopeful that the low rates could boost sales next year. But so far, they have had a minimal impact.
& \# }5 D" A# w& ~& g6 A" `
$ R5 P% N; t4 a; H, R( v. OMortgage applications have risen slightly over the past four weeks, according to the Mortgage Bankers Association. But they are coming off extremely low levels. 5 m$ {- W6 B$ L. ]0 V7 m
To calculate the average rates, Freddie Mac surveys lenders across the country Monday through Wednesday of each week.
0 P0 F0 Z* y0 h  IThe 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.
9 t% z2 s9 y. O  q4 J; rThe 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 q1 K& |( E& V$ _1 o( m! m
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.
8 _- K0 s6 ~+ u' L/ iThe 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.