Mortgage Rates Near Record Low

Mortgage finance company Freddie Mac is reporting that the average rate on 30-year fixed mortgages fell this week to the lowest level of the year. The rate was barely shy of the all-time low. The average 30-year fixed mortgage rate was 4.72 percent this week, down from 4.79 percent last week. The record low was 4.71 percent last December. Even with mortgage rates at record low levels, housing continues to remain weak as unemployment remains high. The number of customers applying for a mortgage to purchase property fell to the lowest level in 13 years last week and was down 35 percent from a month ago, according to the Mortgage Bankers Association. This is due in large part to the expiration of the $8,000 tax credit for first-time home buyers, which expired at the end of April. The European debt crisis and stock market turbulence have helped keep interest rates low. As investors have shifted money into the safety of U.S. Treasury bonds, the yields on those bonds have fallen.