This is turning into a trend:
The average rate on a 30-year fixed mortgage dropped to 4.57 percent this week, mortgage company Freddie Mac reported Thursday. That’s down from the previous record low of 4.58 percent set last week.
It’s the lowest since Freddie Mac began tracking rates in 1971. The last time rates were lower was in the 1950s, when most long-term home loans lasted just 20 or 25 years.
Rates have fallen over the past two months. Investors, concerned with the European debt crisis, have poured money into the safety of Treasury bonds. Treasury yields have fallen and so have mortgage rates, which tend to track yields on long-term Treasurys. via AJC
What is truly a shame is that the lending environment is so tough that even with these low rates deals are still not getting done. You would think that mortgage brokers across the country should be working non stop, but most are scrambling for any work.
The housing tax credit took the wind out of the sails of the real estate industry and has created a moribund atmosphere. Those in a position to refinance already have while those who need to can’t due to the tightening restrictions.
The mortgage industry is in a true Catch 22.
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