Mortgage rates are on the low, and soon to be even lower due to the Federal Reserve buying up government debt. According to Bankrate.com, the average interest rate for a 30-yr fixed mortgage lowered to 5.29%, having previously been at 5.37% the week before. This figure was also taken before the Fed´s announcement on Wednesday, that they would be buying $300 billion in government debt. Mike Larson, a real estate analyst for Weiss Research, commented on this move stating that, "This is a big commitment made by the Fed,...like going all in in poker. The Fed is buying anything and everything to drive down rates." He also remarked that he would not be surprised to see rates lower to the 4.5% range, which would be lowest reached, lower then the 4.7% range after World War II.

Mortgage applications have been piling in due to the ever lowering rates, but are still not at the numbers expected. With those that are coming in, Keith Gumbinger with HSH Associates, a mortgage information publisher, reported that only about 60% of the applications are being approved, which is lower then that of previous years. One must also consider that back then, qualification was lower, credit scores were lower and not as important. Proof of income and assets was also not a strict requirement. All of this led to the current market crisis we are facing now, which is why lenders are being more strict then ever, rejecting on average four out of every 10 loans. Steve Habetz, a mortgage broker in CT, said that "The underwriters are being so careful,...The minutia they're asking applicants for is amazing." All of this quick rejection and scrutiny is making borrowers more hesitant to take those first steps into buying a home, they don't think they will be able to qualify and would rather wait until they think it would be possible. It also costs around $600 or more for an application fee/appraisal, so they don't want to put out money unless they think they stand a good chance of getting approved.