As concerns grow that the economy is showing signs that it may be weakening, for the ninth time in the last 10 weeks mortgage rates fell to the lowest level in almost 40 years.
Freddie Mac reported today that the average rate for a 30-year fixed loan was down from 4.42 percent last week to 4.36 percent this week which is the lowest it's been since Freddie Mac began tracking mortgage rates back in 1971.
As investors moved their money into the safety of Treasury bonds which has lowered their yield, mortgage rates have steadily fallen since spring. Mortgage rates usually tend to track those yields.
Refinancing is at its highest level since May 2009 and makes up 82.4 percent of all new loan activity today because these low rates draw borrowers to refinance their home loans.
Sadly, these low rates have not pushed up home sales because of continued high unemployment, slow job growth and stricter credit standards by the banks. Home sales have also dropped significantly since the home-buying tax credits ended this past April.