Newly built luxury townhomes are offered for sale in Woodland Hills, Calif. Tuesday, Jan. 10, 2012. Fixed mortgage rates hit yet another record low on the second week of the new year. But the cheap rates are expected to do little to boost the depressed housing market. (AP Photo/Damian Dovarganes) / Damian Dovarganes/AP
Even with the cheapest rates in history, the housing market remains depressed. Mortgage buyer Freddie Mac said Thursday that the rate on the 30-year loan dropped to 3.87 percent this week. That’s below the previous record of 3.88 hit two weeks ago.
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.
Mortgage rates tend to track the yield on the 10-year Treasury note, which fell below 1.9 percent this week.
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.
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
