Ask the expert: Mortgage interest rates are dropping, should I take the plunge now or wait? If you have found the right home, and it's priced right for you, this is an excellent time to make the deal. The mortgage market has sprung back to life after a drop in interest rates not seen in almost two years. In one recent week, mortgage applications rose 49 percent according to data from the Mortgage Bankers Association. Though most of these mortgage applications were for refinancing, there's no reason not to jump into the fray now and see what you can do. Many lenders are saying there has been a significant rise in activity as borrowers rush to take advantage of the unexpected drop in rates. Interest rates are very changeable. Just a few weeks ago they stood at 3.73 percent for a 30 year fixed-rate mortgage, the lowest rate since May of 2013, according to Freddie Mac. Low fees for federal loan program The Obama Administration in January decided to cut fees charged by a loan program popular among first-time home buyers. The Department of Housing and Urban Development estimates that 100,000 to 200,000 borrowers could refinance loans guaranteed by the program. Note that while the program may not apply to you, it could influence your ability to get a new mortgage in the near future because lenders will be busy with a rush of refinancing requests. Here's a positive note About two-thirds of fixed rate mortgages that are government backed have an interest rate of 4.5 percent or below, according to big lenders. Lenders say they are now more reliant on home purchases to drive their businesses. Loan originations fell from the previous quarter though banks expect they will soon see more activity. Smaller lenders say they are seeing more mortgage applications.