Mortgage Rates Lowest in 50 Years

Washington, DC, July 9, 2010--Mortgage rates fell for the second straight week to the lowest point in five decades.

The average rate on a 30-year fixed mortgage dropped to 4.57% this week, mortgage company Freddie Mac reported Thursday. 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, when most long-term home loans lasted just 20 or 25 years.

Rates have fallen over the past two months. Investors, concerned with the European debt crisis, have poured money into the safety of Treasury bonds. Treasury yields have fallen and so have mortgage rates, which tend to track yields on long-term Treasuries.

However, low rates have yet to fuel home sales. The housing market has slowed since federal tax credits for homebuyers expired at the end of April. And the latest decline in mortgage rates is unlikely to boost the market.