Weekly mortgage rates down slightly

The Zillow Mortgage Marketplace reported the 30-year fixed mortgage rate is 3.78 percent, down five basis points from 3.83 percent at the same time last week. The rate for a 15-year fixed mortgage is 3.11 percent, while the rate for a 5-1 ARM is 2.52 percent.

Erin Lantz, director of Zillow Mortgage Marketplace, said mortgage rates have remained low in the past few weeks despite stock market volatility. She expects the rates to decouple with stock rates in the upcoming weeks due to rumors of a renewed Federal Reserve economic stimulus in 2012 that could lift stock prices.

Cameron Findlay, LendingTree chief economist, said the low mortgage rates are helping keep housing affordable, but many borrowers continue to be turned away by lenders for refinancing or acquiring a new home loan due to stringent requirements. Further, the government's  HARP 2.0 program is designed only to help 10 percent of all homeowners refinance, leaving many with few options, thus delaying a housing recovery.

"What is more troubling is that the 30- and 60-day delinquency rates are beginning to rise even though 90-day delinquency rates are declining for the fourth straight month," Findlay said. "This suggests some home price erosion may once again be on the horizon, with levels of prime delinquency still twice as high as they were in 2005 before the financial meltdown began."

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