Mortgage rates still looking for bottom

Investors like safety of bonds as eurozone crisis builds

Mortgage rates sank to new lows this week as investors contemplated the prospect of bank runs in Europe and disappointing U.S. job growth.

Rates on 30-year fixed-rate mortgages averaged 3.75 percent with an average 0.8 point for the week ending May 31, Freddie Mac said in releasing the results of its weekly Primary Mortgage Market Survey. That’s down from 3.78 percent last week and 4.55 percent a year ago, and a new record low in Freddie Mac records dating to 1971.