Fixed mortgage rates fell to the lowest level in six decades for the second straight week, according to new figures compiled by Freddie Mac.
The GSE said the average rate on the 30-year FRM dropped to 4.09%, the lowest rate since 1951.
The average rate on the 15-year mortgage, a popular refinancing product, fell to 3.30%, also a new low.
Freddie Mac chief economist Frank Nothaft said continued investor worries over the debt crisis in Europe kept Treasury bond yields low, driving down mortgage rates in the process.
Over the past week the yield on the benchmark 10-year Treasury fell to as low as 1.9% before rebounding to 2.08% on Thursday.
According to interviews with mortgage banking executives, several lenders are staffing up to handle the increased application volume – but many are doing so carefully, so as to avoid steep staffing cuts when rates tick up later in the year.
