"As a result, the average rate for 30-year fixed loans dropped to the lowest level on records dating back to 1971, mortgage buyer Freddie Mac said Thursday. It's down from 4.27 percent the previous week. The last time rates were this low was in the early 1950s.
The average rate on 15-year fixed loans fell to 3.62 percent, the lowest on records dating back to 1991, Freddie Mac said.
Rates have fallen since spring as investors shifted money into the safety of Treasury bonds. That demand lowers their yields, which mortgage rates tend to track. The 30-year rate was 5.08 percent at the beginning of April. The 15-year rate was 4.39 percent."
Rates are lower than they've been in decades but hardly anyone who needs those low rates are going to get them. Could mortgage rates break down below 4%? Yeah, they can drop all the way to 3% after QE2. If and when rates drop to 3%, I'm going to take out a $250,000 loan. My FICO is in the high 700s and I can service a 3% vig on a quarter-of-a-million which I'll use to invest with a time horizon of 5 years. If rates never hit the 3% level, I won't act because the risk/reward wouldn't be worth it for my investment scenario.
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