By Marie Brown

SACRAMENTO (OBSNews.com) - For borrowers interested in buying a home in Sacramento or across the nation there is good news in that mortgage giant Freddie Mac said Thursday that mortgage rates have fallen to record new lows.

The average rate of 4.56% for a 30 year fixed rate mortgage loan was down one one-hundredth of a percent from the previous week. This rate is the lowest since 1971. 15 year fixed loan rates were down to 4.03% from 4.06% the week before.

Part of the explanation for the record low rates may lie with the choice of investors worldwide to move their money into risk-free US Treasury securities. But, with the safety, yields are suppressed and mortgage rates generally track Treasury debt yields.

Homebuyers have yet to flock back to the housing market in large numbers despite record low rates for over a year. Despite this, industry watchers say is still a lot of opportunity in the market for bargains on first time homes, new homes, short-sales, and bank-owned homes.

According to Patrick McGilvray, President of Sacramento real estate broker www.TheHomeBuyingCenter.com, the low rates on mortgages have spurred greater website traffic, but that home buyers and sellers are not completing as many transactions. "We're seeing more buyers interested in buying a home here in Sacramento, but we all wish the economy and company payrolls were in better shape overall, because until the problems with unemployment ease it's going to be difficult to see a strong rebound in the housing sector."