Mortgage rates dropped for the second straight week to the lowest point in 50 years. However, it might not be enough to jump-start the housing market, according to an Associated Press report.
Mortgage company Freddie Mac said the average rate for 30-year-fixed loans dropped to 4.57 percent. That’s down from the previous record of 4.58 percent set earlier this month and the lowest since the company 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.
Low rates have yet to boost home sales, the report stated. The housing market has slowed down considerably since homebuyer tax credits ended on April 30.
To calculate the national average, Freddie Mac collects mortgage rates on Monday through Wednesday of each week from lenders around the country. Rates often fluctuate significantly, even within a given day.