Mortgage rates continue to fall

As the unemployment rate rose for the first time since January, mortgage rates hit their lowest level of the year, according to Freddie Mac. Interest rates for 30-year fixed-rate mortgages dropped to 4.63 percent this week, down from 4.93 a year ago.

"Mortgage rates continued to decline this week following a mixed employment report," said Frank Nothaft, vice president and chief economist for Freddie Mac.

Home prices remain low as numerous individuals continue moving out of foreclosed properties and relocating to rental units, further saturating the market, according to the company. The National Association of Realtors found that distressed homes comprised 39 percent of existing home sales - up from 36 percent a year ago. The median single-family home price was down roughly 5 percent from a year ago, and the amount of houses that sold for under $100,000 grew by 8.9 percent.

The news is not all bad. The serious delinquency rate on first mortgages and closed-end home equity loans balances fell to 7.46 percent, down from 8.89 a year ago, according to Freddie Mac.  

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