The national average for a 30-year fixed mortgage rate dropped to its lowest level in 5 months to 4.93 percent. This is a welcomed relief and should help with the housing market since the two national homebuyer's tax credits are now expired.
The new lower interest rates should also help boost home loan refinancing which will put more cash into buyers' hands and in turn will be re-entered into the U.S. economy. Furthermore, it will make homes more affordable during the usually very active spring selling season which is the housing markets most important period.
According to Freddie Mac the new lowered 30-year fixed-rate is the lowest level its reached since the second week in December 2009.
Freddie Mac vice president and chief economist Frank Nothaft said, "The National Association of Realtors reported that median house prices are recovering in more local areas in the latest quarter."