The average rate on the popular 30-year fixed rate mortgage, which had been sitting for days at 4.40 percent, fell sharply to 4.34 percent, the lowest in over a year and 19 basis points lower than a year ago.
The rate had surged to over 5 percent at the start of November, which caused home sales to fall sharply in December and January.
Looking at the 30-year fixed rate on a $300,000 mortgage, every 25 basis point move down means a savings of $50 on a monthly payment.