According to Julie Haviv of Reuters, 30-year fixed mortgage rates fell to a record low, averaging 4.57 percent this past week from the 4.58 percent last week and the 5.20 percent the week before that. Despite the housing market's struggles due to the high unemployment rate and amount of foreclosures, the mortgage rate - at its lowest since Freddie Mac began keeping track in 1971 - has given some strength to refinance activities in the past three months, according to vice president and chief economist of Freddie Mac, Frank Northaft.

Lower mortgage rates make homes more affordable, according to Marketwatch. Greg McBride, senior financial analyst for Bankrate.com, states that the "difference between a 6% and a 5% mortgage rate on a $300,000 mortgage, for example, is about $188 a month."

McBride also notes how the lack of confidence in the economy contributes to the low mortgage rates. "When investors get nervous, they flock to safe-haven investments such as government debts. Mortgage rates are priced relative to yields on U.S. government debt."

About a 6 percent 30-year fixed mortgage rate was expected by the end of 2010 earlier this year. However, this remains unlikely to happen anytime soon.  On the other hand, Freddie Mac reported that 15-year fixed mortgage rates increased from 4.04 percent last week to 4.07 percent.

*Any information on all blog entries should not be construed as legal advice. If you have any legal issues, please consult an attorney.