U.S. Fixed Mortgage Rate Falls to Lowest on Record

Bloomberg reports:

The U.S. 30-year fixed mortgage rate fell to 4.85 percent, the lowest on record, on a government plan to increase purchases of mortgage-backed bonds and buy up to $300 billion of Treasuries.

The average rate is the lowest in the Freddie Mac weekly survey dating back to 1971, the McLean, Virginia-based mortgage buyer said today in a statement. The rate fell from 4.98 percent a week earlier, Freddie Mac said.

Record low mortgage rates but in some places like California: housing prices went down 46% in one year.What's going to happen to housing prices when mortgages go up?