According to a MSNBC.Com story, Mortgage applications up in latest week, "a decline in mortgage rates to their lowest level in almost a year spurred increased home refinancing activity, but it failed to fuel home purchasing."

Fixed 30-year mortgage rates averaged 5.48 percent last week, down from 5.61 percent the previous week - reaching almost the lowest level mortgage rates have been in a year.

The fact that home sales were not significantly affected does seem to indicate that potential home buyers are not sure about current home prices. One would assume that the cheaper the mortgage rate, the more expensive the home one could purchase, but perhaps the affordability of today's homes has reached too high.

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