CHARLOTTE, NC (WBTV) - Real-estate web site Zillow said Tuesday that rates on 30-year fixed mortgages fell again to a new all-time low, dropping to 3.35% from 3.42% last week.
But many people are having a hard time taking advantage of the rates.
Everette Mode devoted his entire career to one manufacturing company. His wife Teresa was proud of him for it. But then in 2009, that company started out-sourcing overseas.
"After being there 22 years, he lost his job," says Teresa. "And everything started snow-balling after that.
The Modes have two daughters to care for, and house payments to make. They've been consistent with both, and because they've never even been late on their mortgage, they thought refinancing could help until Everette found another job. But they were denied.
"My credit was good then," Everette says bitterly.
Federal government officials want low rates to rehab the economy - to help people stay in their homes. But new reports show the plan isn't working.
"It doesn't make sense to me," Everette says. "What good is having this refinancing stuff if you can't do it?"
Even though mortgage rates keep sinking, approved applications to refinance are falling week after week.
Right now, there are two problems. First, banks are backlogged with refi requests. Second, their standards are incredibly strict.
"We'd never been late on a payment," Teresa says, "and then after we tried to refinance, and we couldn't, then we started getting behind."
Some experts say the only way for refi to work as intended is for banks to loosen their standards. But no one sees that happening anytime soon. Banks were, after all, blamed for the mortgage meltdown because their rules were too loose.
"Still," says Teresa, "Now it's one major problem after another. Bills are piling up. Phone calls...medical problems."
And Everett feels like he can no longer trust the corporate world or the public one.
"I'm trusting in God to take care of us, because I don't know from day to day," Everett says. "But he does."
