Mortgage rates hit record low

Mortgage rates dropped to a record low 4.69 percent in the week ending Thursday, which could provide a boost to the sluggish housing market. 

Following the April 30 expiration of a tax incentive to purchase a home, mortgage rates declined for 30-year fixed loans from 4.75 percent, according to a release from mortgage company Freddie Mac. 

The previous record — set during the week of Dec. 3 — was 4.71 percent. 

The tax credit — up to $8,000 for some buyers — appeared to spur more than 2 million additional sales, according to Treasury Department estimates. 

But new homes sales dropped precipitously in May — down 33 percent to an annual pace of 300,000, the lowest level on record and the worst monthly showing since 1963. 

Existing home sales also decreased in May, 2.2 percent, compared with April to a 5.66 million annual pace, according to a June 22 report from the National Association of Realtors. 

Lawrence Yun, NAR's chief economist, said he expects one more month of elevated home sales behind low mortgage rates and stabilizing home prices.

"We are witnessing the ongoing effects of the home buyer tax credit, which we’ll also see in June real estate closings," he said in a release.

"However, approximately 180,000 homebuyers who signed a contract in good faith to receive the tax credit may not be able to finalize by the end of June due to delays in the mortgage process, particularly for short sales."

Congress is looking to extend the closing date from June 30 to Sept. 30 for those who qualified for the tax credit.