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.
7 i# N4 m7 G: i: GMortgage 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) D  u$ {8 s
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.   B1 [6 m, o8 ]2 P, B
Mortgage rates tend to track the yield on the 10-year Treasury note, which fell below 1.9 percent this week. $ M5 r! W: A. c* j
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. 1 n' \* _2 q7 |/ ~
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. $ T% C2 B# x" j; J( M
Sales of previously occupied homes were dismal last year. New-home sales in 2011 were the worst on records going back half a century. 9 i( {2 d, R# U( Y
Builders are hopeful that the low rates could boost sales next year. But so far, they have had a minimal impact. , ?' S8 t1 e4 G) I, a) F, {' t; ?
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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.
4 J4 N1 I! Z7 E( YTo calculate the average rates, Freddie Mac surveys lenders across the country Monday through Wednesday of each week.
7 E  v/ N+ |3 e( G3 }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. 6 h+ k" V  @+ o& f  P1 b9 V
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. , R0 f' N2 V+ L7 k1 C/ H8 o
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. 3 a( E0 a' o/ \7 n' b# h! T/ X
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.