The FED program that pumped $1.25 billion into mortgage backed securities successfully keeping rates at or around 5% expired in March, giving economists reason to fear that rates would sky-rocket. However, due to the European debt crisis many investors shifted their funds into "safer" U.S. treasury bonds, which have effectively kept the rates down.

Although the rates remain low, the housing market is still struggling. Mortgage property applications suffered a decline not seen since 1997. Analysts believe this decline is a direct result from the expiration of the Homebuyer Tax Credit, a federally funded program that provided a tax credit to qualified first time homebuyers for up to $8,000 and up to $6,500 for qualified homeowners.

A stipulation to the program requires that homebuyers must have the sales contract signed by April 30th and the sale must be complete by June 30th. Many homebuyers that have signed contracts fear that they will not be able to complete the sale by the end of this month. The government is entertaining the idea of extending the tax credit program in an effort to provide an opportunity for homebuyers with signed contracts to complete their sales at a later date.