Money Morning Mailbag: Mortgage Rates Slip But U.S. Housing Market Still Unfriendly for Some Seeking Refinancing

U.S. mortgage rates dropped to a record low this week as the U.S. Federal Reserve started its second round of quantitative easing (QE2). The 30-year fixed loan rate fell to 4.17% from 4.24%, Freddie Mac (OTC: FMCC ) said yesterday (Thursday). The average 15-year rate fell to 3.57% from 3.63%. Lower rates pushed up refinancing applications by 6%, according to the Mortgage Bankers Association's Weekly Mortgage Applications Survey for the week ending Nov. 5. The refinancing gauge has more than doubled since the beginning of 2010.