Mortgage rates hit historic lows, again

 Fixed mortgage rates have fallen to historic new lows for a fourth straight week and are likely to fall further.

The average on a 30-year fixed mortgage fell to 4.01 percent this week, Freddie Mac said Thursday. That's the lowest rate since the mortgage buyer began keeping records in 1971. The last time long-term rates were lower was in 1951, when most long-term home loans lasted just 20 or 25 years.

The average on a 15-year fixed mortgage, a popular refinancing option, was down to 3.28 percent. Economists say that's the lowest rate ever for the loan. The average rate on a five-year adjustable-rate mortgage was unchanged at 3.02 percent. The average for the one-year adjustable-rate mortgage ticked up to 2.83 percent.

On Long Island, the 30-year fixed rate was 4.19 percent, down from 4.25 percent, according to numbers tracked for Newsday by HSH Associates at HSH.com. The 15-year fixed rate offered on Long Island was 3.79 percent, down from 3.84 percent, and the one-year adjustable was 3.63 percent, up from 3.50 percent.

Mortgage rates tend to track the yield on the 10-year Treasury note. The 10-year yield has risen this week to around 2 percent. A week ago, it touched 1.74 percent -- the lowest level since the Federal Reserve Bank of St. Louis started keeping daily records in 1962. As recently as July, the 10-year yield exceeded 3 percent.

Rates on mortgages could fall further after the Federal Reserve announced last week that it would take further action to try to lower long-term rates.

Still, low rates have so far done little to boost home sales or refinancing. Many would-be buyers or homeowners don't have enough cash or home equity to get a new loan.

To calculate average mortgage rates, Freddie Mac surveys lenders across the country Monday through Wednesday of each week.