Mortgage Rates Lowest Since 1971: Is It Enough To Stop The Downward Trend?

Fed lowers the fed funds rate to between 0 and .25 percent, but with unemployment up, is this going to have any effect on home buying?

Freddie Mac on Thursday, Dec. 17, 2008, reported that rates fell to the lowest level since 1971. Average rates on a 30-year fixed-rate mortgage dropped to 5.19 percent, which is down from the year's previous low of 5.47 percent, which was set just last week.

The fly in the ointment is unemployment: the Labor Department reported that initial joblem claim benefits, seasonally adusted, were 554,000. There are now 4.38 million people receiving unemployment benefits.