According to the latest reports, there has been a plunge in the mortgage rates and that to at their lowest point. The fall in the mortgage rates is due to the shifting of investors to treasury bonds.

Freddie Mac, a mortgage Company revealed the mortgage rate on different plans. On a 30-year fixed mortgage, the rate has been dropped to 4.57% from 4.58%. 15-year and five-year mortgages have also experienced a major fall. The rates are the lowest in the past five decades.

Diane K. McCord, Senior Vice President and Mortgage Loan Officer at Bank of Clarendon expressed that with the fall in the mortgage rates, they are expecting that people would start buying property. But, as the rules for getting money from banks have become stringent, so even people with sound financial condition, find it difficult to buy homes.

AP reports expressed that the expiry of the tax credits in April, has contracted the housing market.

Fannie Mac told that they won’t be issuing mortgage backed loans for a period of seven years to those who had defaulted their loans, earlier. It also expressed to take the aid of court to cover its outstanding mortgage debt from the defaulters.

A bill has passed by the House, according to which, the Federal Housing Administration is not allowed to issue mortgage based loans to those, who deceived the earlier contracts. But, the bill has still to get the Senate’s approval.