For the sixth week in a row, mortgage rates have dropped.  Now at 4.35 percent, this is the lowest rate Bankrate has recorded in the last 26 years.  According to the site,

One year ago, the mortgage index was 4.58 percent; four weeks ago, it was 4.46 percent.  The benchmark 15-year fixed-rate mortgage remained the same, after dropping 15 basis points last week.

While some predict that rates will not go lower, other observers believe the suffering job market may cause them to drop further.