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. ) c; r, b0 m: _5 Y) J: D: 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.
( N( L8 F$ o# s  }0 G% ZThe 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. ) D& X$ ]6 ^, e; P+ M4 y8 A7 v1 ^
Mortgage rates tend to track the yield on the 10-year Treasury note, which fell below 1.9 percent this week.
! @& L. o. \6 w) LRates 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.
( H) L$ Y3 v7 n9 ~  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. * b% l) C, o. @! T) ~# Y" x' ]
Sales of previously occupied homes were dismal last year. New-home sales in 2011 were the worst on records going back half a century.
. z0 u) E0 n( bBuilders are hopeful that the low rates could boost sales next year. But so far, they have had a minimal impact. . r) [4 y( r: f/ _5 \4 k

" F% f4 b, v& [* J/ E6 t& gMortgage applications have risen slightly over the past four weeks, according to the Mortgage Bankers Association. But they are coming off extremely low levels. ( \6 ~# i' y9 J$ b' |$ G
To calculate the average rates, Freddie Mac surveys lenders across the country Monday through Wednesday of each week. 4 J( W3 c* D* G% v5 j. ~
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. 9 a1 X% O& a: o
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.
1 R; _" I( ]! pFor 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. 4 q# T% e9 x. ]4 y9 j& X1 ~* w
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.