In Freddie Mac's reults of its Primary Mortgage Market Survey, the 30-year fixed-rate mortgage (FRM) averaged 4.85 percent with an average 0.7 point for the week ending March 26, 2009, down from the previous week when it averaged 4.98 percent. Last year at this time, the 30-year FRM averaged 5.85 percent. The 30-year FRM has not been lower in the life of Freddie Mac's weekly survey, which dates back to 1971 for the 30-year FRM.

The 15-year FRM this week averaged 4.58 percent with an average 0.7 point, down from the previous week when it averaged 4.61 percent. A year ago at this time, the 15-year FRM averaged 5.34 percent. The 15-year FRM has never been lower in the life of Freddie Mac's weekly survey, which dates back to 1991 for the 15-year FRM.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 4.96 percent this week, with an average 0.7 point, down from the previous week when it averaged 4.98 percent. A year ago, the 5-year ARM averaged 5.67 percent. The 5-year ARM has never been lower in the life of Freddie Mac's weekly survey, which dates back to 2005 for the 5-year ARM.

One-year Treasury-indexed ARMs averaged 4.85 percent this week with an average 0.6 point, down from the previous week when it averaged 4.91 percent. At this time last year, the 1-year ARM averaged 5.24 percent.

"The Federal Reserve's announcement that it intends to purchase Treasury securities over the next six months caused bond yields to drop and mortgage rates followed," said Frank Nothaft, Freddie Mac vice president and chief economist. "Rates for 30-Yr FRMs peaked last year at 6.63 percent on July 24th. With this week's 30-Yr FRM, the interest rate difference is almost 2 percentage points, which amounts to a savings of about $225 in monthly mortgage payments for a $200,000 loan.

"And potential homebuyers are taking notice of these historically low mortgage rates. Both new and existing home sales rose 5 percent in February. First-time homebuyers accounted for half of all existing home sales, according to the National Association of Realtors®. In addition, mortgage applications for home purchases consecutively rose over the first three weeks in March, based on figures published by the Mortgage Bankers Association."

Use Your Tax Return for Good

Tax season can be a challenging time of the year. Some people wait until the last minute to file their taxes, while others file and received their funds before the mid April deadline, or paid the IRS if the case may be. But if you are one of the lucky who get a return, what will you do with those long awaited greenbacks? A popular choice amongst consumers is to pay off credit card debt; another is indulging in something extravagant. But why not consider how your tax return can help maximize your mortgage product and your financial situation in the long run?

Consider refinancing if you have an ARM or a high interest rate loan. Refinancing into a fixed rate and/or a lower interest rate can save you money in the long run. Why not do it now when rates are at all time lows? You can use your tax return for closing costs.

If you are happy with your mortgage product and rate, why not use your tax return to help add the gourmet kitchen you've always wanted? Not only can you have that extra bedroom or outdoor kitchen you've always wanted, but you may also be increasing the value of your home and get more money when you are ready to sell. Let your tax return help increase the value of your home by using it to help fund a rehab loan.

Perhaps you want to upgrade to a new home for your growing family. Your tax return can come in handy with closing costs and other fees associated with buying a new home. You can also use your tax return for the closing fees if you want to buy a vacation home for your family to enjoy in the summer, or any time of year.

The uses for your tax return are endless. A vacation comes and goes and a new car usually depreciates in value, but investing in your home will almost always have a great return.

Home Buyer Tax Credit Increases Activity

NAR President Charles McMillan says home shopping activity has picked up with housing affordability at a record high.

"The number of buyers looking for homes rose 5 percent in February, and also was 5 percent above a year ago," he says. "It appears most of the increase in buyer traffic occurred in the latter part of the month after the $8,000 first-time buyer tax credit was put in place. At the same time, mortgage purchase applications have risen, so we expect to see sales picking up around late spring."

McMillan notes that more potential buyers are learning about the tax credit, just as the traditional spring home-buying season begins.

Existing-home sales— including single-family, townhomes, condominiums and co-ops—rose 5.1 percent to a seasonally adjusted annual rate of 4.72 million units in February from a pace of 4.49 million units in January.

New Homes: Two Master Bedrooms

Why have only one master bedroom when you can have two? That's the question Bellevue, Washington-based homebuilder Bennett Homes asks.

Bennett Homes sales and marketing director Gayl Van Natter says, "We did some exhaustive demographic studies to see how the market place is changing. And we decided that the floor plan designs we offer should reflect the types of family and non-family groups that have entered the marketplace."

"Two masters answer the needs of more than one type of buyer," she explains. "Baby Boomers are opting to have parents live in with them, sometimes two siblings decide to invest together to save money, adult friends buy a home together, or buyers just want a second master for guests, a nanny or a caregiver."