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Mortgage rates fall to historic low


Thirty-year mortgage rates have fallen below 4 percent for the first time in history, CNNMoney reports.
The interest rate for a 30-year fixed-rate loan fell to 3.94 percent, which is the lowest rate since Freddie Mac began tracking it.
Additionally, a 15-year fixed rate mortgage fell to 3.26 percent.
However, the low mortgage rates have done little to help the economy, according to the Mortgage Bankers Association (MBA). The group’s weekly survey of mortgage applications showed a drop in loans of more than 4 percent, and refinance applications fell more than 5 percent.
“Potential borrowers largely remained on the sidelines, seemingly unimpressed by the lowest (by any measure) mortgage rates since the 1940s,” said Mike Fratantoni, the MBA’s vice president of research and economics.
Keith Gumbinger of HSH Associates, a mortgage information provider, said low mortgage rates are natural given the country’s economic circumstances.
“The lowest mortgage rates come at the bleakest periods,” he said.

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