Mortgage rates fell for the second straight week to the lowest point in 50 years. However, many people either don’t qualify for new mortgages or aren’t looking for a home because they already took advantage of low rates and a tax credit earlier this year.

Mortgage company Freddie Mac reported Thursday that the average interest rate on a 30-year fixed mortgage dropped to 4.57% this week. That’s down from the previous record low of 4.58% 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.

Low rates have yet to fuel home sales. The housing market has slowed since federal tax credits for homebuyers expired on April 30th. Mortgage rates have hovered near record lows for a while, so most people who can afford to buy homes or qualify to refinance their loans have already done so.

Rates on 15-year fixed-rate mortgages increased to an average of 4.07%, up from 4.04% last week. That was the lowest on records dating to September 1991. Rates on five-year adjustable-rate mortgages averaged 3.75%, down from 3.79% a week earlier. That was also the lowest on Freddie Mac’s records, which date back only to January 2005.

Thinking of buying a new home? Though the first time home buyer credit has expired, interest rates are low and home builders like Norton Homes are making incredible deals available to potential home owners.

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Tags: anoka county new construction, Blaine mn homes, Norton Homes

This entry was posted on Thursday, July 8th, 2010 at 8:07 pm and is filed under Home Buying Information, Real Estate News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.