Reaching its eighth record low in a year the average rate on the 30-year fixed mortgage has fallen once again to a new record low. Freddie Mac has announced that the average rate on the 30-year fixed mortgage dropped to 3.88 percent down from the "old record" of 3.89 percent which happened to be just one week ago.
Also sales of previously occupied homes are selling just slightly in front of 2010's pace.
As 30-year rates drop builders are becoming more hopeful that these low rates could boost sales this year. According to the National Association of Home Builders, low mortgage rates were the main reason in their recent survey that showed builder sentiment rising this past December to its highest level in more than a year.
Furthermore, according to the Mortgage Bankers Association, mortgage applications have risen almost 6 percent on a seasonally adjusted basis over the past month.