Mortgage rates continue to fall and continue to break records!  The average 30 year rate on a mortgage was 3.56%  which is down from 3.62% last week and is the lowest rate ever since they started offering long term mortgages in the 1950’s.  The 30 year mortgage rate has matched or beaten record levels for 11 of the last 12 weeks!  The 15 year rate fell as well to 2.86% down from 2.89% the week before.

Although the mortgage rates are phenomenal, many buyers are having trouble coming up with a large enough down payment or are having trouble with the stringent lending requirements.

According to DSNews.com several market indicators point not just to a stabilization of mortgage lending standards, but also a loosening of credit availability which could all lead the beginning of the end to the housing crisis.

The loan-to-value ratios are up from their low point of 74% in 2010 to 82% and lending amounts have increased to 3.5 times borrower earnings up from 3.2 times.

The banks are loosening credit standards, but the credit requirements are still a tough hurdle for many to get over. The average credit score has been remaining right around 700 which is slightly higher than before the crisis but is a reasonable number.  8% of purchase contracts that fell through in 2011 were due to the buyer’s inability to secure financing.