This is a predictable relationship. As unemployment rises, there’s less demand in general and for homes in particular. With falling demand, prices as measured in mortgage interest rates, will tend to fall, all things being equal.
So even though mortgage interest rates are near all-time lows, there’s simply little demand in the system for mortgages, either new mortgages or mortgage refinancing.
The benchmark 30-year fixed-rate mortgage fell 10 basis points this week, to 4.69 percent, according to the Bankrate.com national survey of large lenders. A basis point is one-hundredth of 1 percentage point. The mortgages in this week’s survey had an average total of 0.36 discount and origination points. One year ago, the mortgage index was 4.77%; four weeks ago, it was 4.71%.
Read more: http://www.foxbusiness.com/personal-finance/2011/07/14/mortgage-rates-fall-to-labor-pains/#ixzz1S8R4x54a