Rates on 30-year mortgages fell to the lowest level on record for the 2nd consecutive week  after the Federal Reserve began a new effort to assist the staggering US housing market. Freddie Mac said that the average rates on 30 year fixed rates dropped forn 4.85 % to 4.78 %.  These rates turn out to be the lowest in the history of Freddie Mac which dates back to 1971.

Low rates have sparked a raise in refinancing activity.  The Mortgage bankers Association said Wednesday that its weekly application index climbed 3 % for the week that ended March 27th on top of a 30% increase a week earlier.  Nearly 80% of the applications came from borrowers seeking to refinance.

The other side of the equations is that lenders have tightened lending standards over the past year.  So, the best rates are avilable only to those people with solid credit.   The average rate for 15 year fixed mortgage is 4.52% % down from 4.58 %.