I received an article in my email today that tells of mortgage applications increasing as interest rates continue to drop.  What this tells me is that buyers are starting to understand that it is an incredible time to buy with near historic low rates.  The thing to remember, is that we don't know how long rates will be at these levels, so it is important to take advantage of it as a buyer while it is here...and we can help you or your family or friends if you are ready to BUY!!!  Enjoy the article:

Mortgage applications soar thanks to low interest rates

By Stephanie Armour and Anna Bahney, USA TODAY The number of home buyers applying for mortgages surged by a record amount last week in response to aggressive federal efforts to lower mortgage rates. Financial lobbyists advocated more of the same to stimulate the housing market. Mortgage applications more than doubled in the holiday week ended Nov. 28 from the week before, according to a report Wednesday by the Mortgage Bankers Association. The association's index, a measure of mortgage loan application volume, was up 112% on a seasonally adjusted basis from the week earlier. And the refinance index leapt 203%. The jump in applications comes as the average rate on a 30-year, fixed-rate loan dropped to 5.47% last week, the lowest level since June 2005, from 5.99% the prior week. At the current rate, monthly borrowing costs for each $100,000 of a loan would be about $565.91, down $71 from three months ago. "Interest rates fell way down. It's because of the (federal) action to buy up Fannie Mae and Freddie Mac assets," says Patrick Newport, an economist at IHS Global Insight. He was surprised by the jump in applications. "This may have exceeded the Fed's expectations." In November, the Federal Reserve said it will buy up to $100 billion in mortgages held by Fannie Mae, Freddie Mac and the Federal Home Loan Banks. It will also buy up to $500 billion of mortgage securities backed by Fannie Mae, Freddie Mac and Ginnie Mae. The goal, in part, was to cut mortgage rates. Scott Talbott of the Financial Services Roundtable said that the Treasury Department is considering a plan similar to the action the Fed took last week to further reduce interest rates. Under the plan, still in development, Treasury would purchase mortgage-backed securities from Fannie Mae and Freddie Mac to drive down mortgage rates — perhaps to as low as 4.5%. "It would make homes more affordable," Talbott says, "and make it easier to refinance, which could help struggling homeowners stay in their homes."