Around Waynedale, people often keep a few stray singles in their pocket. After all, they might want to pick up a fried tenderloin sandwich at a church fundraiser or toss some money into a collection can at a business to help a resident fight cancer.WASHINGTON – The average rate on 30-year fixed mortgages fell last week to a record low, the ninth time that has happened in the past year. Even with the cheapest rates in history, the housing market remains depressed.
Mortgage buyer Freddie Mac said Thursday rates on 30-year loans dropped to 3.87 percent last week. That is below the previous record of 3.88 hit three weeks ago.
The average rate on 15-year fixed mortgages fell to 3.14 percent, also a record low.
Mortgage rates tend to track the yield on the 10-year Treasury note, which fell below 1.9 percent last week.
Rates have been low for more than a year, and the average rate on30-year loans has hovered near 4 percent for more than three months. Yet few people can afford to buy a home or qualify for a loan.
High unemployment and scant wage gains have made it more difficult 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.
Sales of previously occupied homes were dismal last year. New-home sales in 2011 were the worst on records going back a half-century.
Builders hope low rates will boost sales next year. So far, they have had minimal effect.
Mortgage applications have risen slightly over the past four weeks, according to the Mortgage Bankers Association. But they are coming off extremely low levels.
To calculate the average rates, Freddie Mac surveys lenders across the country Monday through Wednesday of each week.
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.
The average fee for 30-year loans rose to 0.8 from 0.7; the average on 15-year fixed mortgages was unchanged at 0.8.
For 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.
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.
