By Holden Lewis • Bankrate.com
A key mortgage rate fell to another modern-day low this week, as a refinancing boomlet took hold.

The benchmark 30-year fixed-rate mortgage fell 1 basis point this week, to 4.74 percent, according to the Bankrate.com national survey of large lenders. A basis point is one-hundredth of 1 percentage point. One year ago, the mortgage index was 5.59 percent; four weeks ago, it was 4.88 percent.

The benchmark 15-year fixed-rate mortgage rose 2 basis points, to 4.22 percent. The benchmark 5/1 adjustable-rate mortgage fell 1 basis point, to 4.06 percent.

Few borrowers

The uncertain job market dissuades people from buying homes. And without a steady income in the last two years, it's harder to qualify for a refinance -- that is, if the home's value supports a refi. So even with record-low mortgage rates, there just aren't a lot of borrowers. For mortgage lenders, "it's like we've got this beautiful buffet of food laid out, and nobody's coming up to eat it," says Christopher Cruise, a trainer for LoanOfficerSchool.com. He says steady jobs are more important to mortgage borrowers than low rates.

"If borrowers could see a light at the end of the tunnel, and could see 7 percent rates and they had steady jobs, they would rather have that than 4.5 percent rates" in the current job market, Cruise says. "As much as people like low rates, they've got to have steady work."

Jones says he has a suggestion for stimulating the economy: "If I had it my way, we would allow anyone who's current on their loan today to refinance at current market rates, even if they're under water, he says, calling it "a great way to get money in the pockets for people to recover from this economy."

*** I love this refinance idea! ***