By Derek Kravitz, Associated Press

WASHINGTON – The average interest rate on the 30-year fixed mortgage has fallen below 4 percent for the first time ever, to 3.94 percent.

For those who can qualify, it’s an extraordinary opportunity to buy or refinance. And mortgage rates could fall even more now that the Federal Reserve plans to reshuffle its portfolio of securities to try to lower long-term rates.

On Thursday, Freddie Mac said the rate on the 30-year fixed mortgage dropped from 4.01 percent last week, the previous low.

The average rate on a 15-year fixed loan, a popular refinancing option, dipped to 3.26 percent, also a record. The 15-year loan has fallen for six straight weeks.

Mortgage rates are lower than they were in the early 1950s, when the average rate reached 4.08 percent for a few months, according to the National Bureau of Economic Research. Back then, mortgages typically lasted just 20 or 25 years.

Still, rates have been below 5 percent for all but two weeks in the last year, and that has done little to boost home sales. This year is shaping up to be among the worst for sales of previously occupied homes in 14 years.

“Interest rates are obviously not an impediment to housing,” said Mark Vitner, senior economist at Wells Fargo. “It’s uncertainty about the economy, about jobs, about incomes. It’s not a question of affordability. It’s simply a lack of wherewithal to buy a home or a lack of confidence to commit to buying one.” Continue here – > Team Investment