Mortgage Rates Just Keep On Falling

I stopped questioning whether mortgage rates could fall any further, once the average for 30-year, fixed-rate mortgages fell below 4 percent.

Now, 30-year rates are well below that level and the average for 15-year, fixed-rate home loans is close to dipping below 3 percent. Both rates, the former, a popular option for buying, and the latter, for refinancing, set new record lows again this week.

Thirty-year, fixed-rate mortgages averaged 3.84 percent with an average 0.8 point this week, down from 3.88 percent a week ago, according to the weekly survey by mortgage giant Freddie Mac. The previous low of 3.87 percent was reached Feb. 9.

The average for 15-year, fixed-rate residential loans was 3.07 percent with an average 0.7 point, down from 3.12 percent a week ago. The previous low was 3.11 percent, set April 12.

Low mortgage rates and lower asking prices are helping to stabilize the housing market. But buyers still remain cautious in a slowly improving economy in which the short-term outlook is still colored with uncertainty. And stricter mortgage underwriting is still demanding strong credit scores and sizeable down payments to get the best rates.