Meltdown 101: Low Mortgage Rates Not For Everyone

ADRIAN SAINZ

Every week, mortgage finance giant Freddie Mac releases average rates on four types of home loans, including 30-year fixed rate mortgages — the most popular type of loan for home buyers.

Lately, the number put out by Freddie Mac has been incredibly low — temptingly so for people thinking about refinancing or buying a new place. But anyone who comes across this average may be disappointed when they find out what kind of rate they actually qualify for.

Why is it that the average mortgage rate can be so hard for an actual borrower to get? Here are some questions and answers.

Q: First of all, what's the average been lately?

A: Average rates on 30-year fixed mortgages reached 4.78 percent the week of April 2, a record low dating back to when Freddie Mac first started its survey of mortgage rates in 1971. That mark was tied when the latest number came out on Thursday.

Rates began falling in the winter, and slid again after the Federal Reserve said last month it would buy $1.2 trillion in mortgage-backed securities and $300 billion in long-term government debt, which traditionally influences rates on 30-year home loans.