Mortgage rates keep dropping; few can take advantage

The economy added 200,000 jobs in December and 1.6 million total last year, the most since 2006. But unemployment is still persistently high, making it difficult for potential homeowners to enter the housing market, which likely is still years away from a full recovery. 

Mortgage rates have been dropping along with the yield on 10-year Treasury notes, which are now tracking below 2 percent this week. 

Although final numbers aren’t out yet, David Crowe, chief economist with the National Association of Home Builders, said Wednesday that he expects 2011 to be the worst on record since the 1940s for the housing market. 

He is confident though that the market has hit bottom and will trend upward this year, albeit at a slow pace.