Rates Hit Record low! Calling First Time Home Buyers

Interest rates on 30-year mortgages dropped to the lowest level on record this week, adding another incentive for home buyers to leap back into the market.

Few in the industry, however, consider falling rates the silver bullet to a real estate recovery. The tumbling economy continues to weigh heavily on consumer psychology.

"Will it help fuel some demand? Sure it will,"

"Will it be the biggest factor this year? No. Ending the recession, reducing the pace of job cuts and solving the jumbo loan problem will make a much bigger difference."

Mortgage giant Freddie Mac said Thursday that average rates on 30-year fixed-rate mortgages fell to 4.85 percent, down from 4.98 percent last week. That's the lowest in the 38-year history of the company's survey. It's also nearly 2 percentage points off last year's peak of 6.63 percent, amounting to consumer savings of about $225 per month on a $200,000 loan.

One more reason to be hitting the streets and finding those First time home buyers!