Rates on 30-year mortgages dipped slightly this week, the fifth decline in the past six weeks.
Freddie Mac, the mortgage company, reported Thursday that 30-year, fixed-rate mortgages averaged 5.67 percent this week, down from 5.68 percent last week.
The 30-year mortgage, which ended last year at 6.17 percent, has been below 6 percent for five weeks, a stretch that has not been seen since 2005.
Analysts attributed the declines in mortgage rates to growing fears that the country could be slipping into a recession.
"Economic news released in the past week showed that the economy continues to be weak," said Frank Nothaft, chief economist for Freddie Mac.
Another factor pushing mortgage rates lower was the decision by the Federal Reserve last week to cut a key interest rate for a second time in January as Fed policymakers moved aggressively to lower borrowing costs in an effort to keep the country out of a recession.
Calling all buyers!! So isn't this the best time to buy?
Analysts are hoping that this low level for mortgage rates will help spur a rebound in the housing market, which suffered steep declines last year in sales of both new and existing homes.
Other mortgage rates also declined this week. Rates on 15-year mortgages, a popular choice for refinancing, dipped to 5.15 percent, compared with 5.17 percent last week.
As Industry Professionals we have to shout this out... and we are not.
Uhhh...prices are still at all time highs.
Buyers like me, are looking, getting qualified and waiting.
Two weeks ago, I saw a home listed at $75,000 less than last year and think it's still over priced.
My family had decided to look and see and wait!
Think about it. What would happen to our economy if inflation rose as quickly as home prices did in the last 4 years?
We'd be in a lotta trouble.