30-year fixed mortgage rates fell last week to 4.76 percent which is down from 4.88 percent the previous week. Also the average rate on the 15-year fixed mortgage dropped to 3.97 percent from 4.15 percent the previous week.
Both the 15-year and the 30-year rates hit major lows last November when the 15-year rate dropped to 3.57 percent, which was the lowest level on record dating since 1991, and the 30-year rate hit a 40-year low of 4.17 percent.
With growing concerns on crisis in Japan after it was hit by a devastating earthquake and tsunami, which could slow economic growth, U.S. Treasury bonds fell as investors sought safer investments. As a result both the 15-year and 30-year interest rates also dropped. Mortgage rates usually track the yield on Treasury notes.
Unfortunately, low mortgage rates have not been enough to restart the housing market. However, most economists agree that home values will begin to climb in the second half of 2011 and that the housing market may come back to life once again.