National

Jul 8, 2010 10:56 AM by Bea Karnes, News First 5

Mortgage rates drop to record low

Mortgage rates fell for the second straight week to the lowest point in five decades, but it may not be enough to jump-start the housing market.

Mortgage company Freddie Mac says the average rate for 30-year fixed loans dropped to 4.57 percent. That's down from the previous record of 4.58 percent set last week and the lowest since Freddie Mac began tracking rates in 1971. Rates have fallen over the past two months.

Investors, concerned with the European debt crisis, have poured money into the safety of Treasury bonds. Treasury yields have fallen and so have mortgage rates, which tend to track yields on U.S. debt. However, low rates have yet to fuel home sales.

The housing market has slowed since federal tax credits for homebuyers expired at the end of April.

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