Last week the interest rate on a 30-year fixed mortgage hit an all time low and now this week it has dropped even further to 3.79 percent down from 3.83 percent.
Freddie Mac chief economist Frank Nothaft said in a statement yesterday, "The European debt crisis overshadowed improving economic indicators for the U.S. and allowed Treasury bond yields and fixed mortgage rates to ease for another week."
Furthermore, April posted an increase in new housing starts while new construction of single family homes also increased to a three month high.