The rates on 30-year mortgages were far below in comparison to the previous year. This year, the average rate is somewhere near 5% and last year, it averaged about 5.16%.

The fixed-rate mortgages have faced a tremendous downfall from 4.40% to 4.34%, according to Freddie Mac.

The average of rates on five- year adjustable-rate mortgages has also come down from 4.27% to 4.19% a week before. Though, one year ARMs have risen from 4.22% to 4.33%.

The rates of interests can be reduced by buying points, equal to 1% of the mortgage amount. According to Freddie Mac’s survey, the nationwide survey was 0.7 points for 30-year mortgages and 0.6 points for 15-year, five-year and one-year loans.

"To me, these numbers say, for another week, so far so good”, said Don Rissmiller, Chief Economist for New York-based Strategies Research Partners. "The question that's lingering is what happens when the Fed removes its continuing support for housing".

The purchase gauge decreased 7% and the refinancing gauge increased 1.4% in the first week of February as the Mortgage Bankers Association’s index of mortgage applications fell 1.2%. Maximum applications were for refinance transactions.