Last week interest rates for 30-year home loans dipped slightly in almost a month but did not reach the record low set in early last December.
Down from 5.14 percent a week earlier the average rate on a 30-year fixed mortgage is 5.09 percent based on numbers released by Freddie Mac late last week.
Edged down by an aggressive government campaign to reduce consumers' borrowing costs, 30 year interest rates dropped to a record low of 4.71 percent in early December, but then began to slowly and steadily rise the remainder of the month.
Pumping $1.25 trillion into mortgage-backed securities, the Federal Reserve is to try to bring down mortgage rates and so far it has seemed to help, however that money will run out by next spring. Not only is the program designed to lower interest rates, it's also to help make home buying more affordable and to give the housing market a boost.
A common consensus is that an additional dose of stimulus might be needed especially if the economic recovery were to weaken in any way and therefore some of the federal policymakers feel that the program should be extended and expanded beyond its current end date of March 31st.
Also according to Freddie Mac the average rate on a 15-year fixed-rate mortgage fell to 4.5 percent, down from 4.54 percent the previous week.
The key to the housing market is to get it back on a firm foundation so it can have a lasting recovery.