by Calculated Risk on 5/30/2012 07:00:00 AM

From the MBA: Mortgage Rates Drop to New Survey Lows

The Refinance Index decreased 1.5 percent from the previous week. The seasonally adjusted Purchase Index decreased 0.6 percent from one week earlier.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,500 or less) decreased to 3.91 percent, the lowest rate in the history of the survey, from 3.93 percent, with points increasing to 0.46 from 0.39 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans.

Click on graph for larger image.

The purchase index is still very weak. This index has mostly been moving sideways for the last two years, although the 4-week average has increased slightly over the last couple of months.

Mortgates rates fell to another record low last week.