The mortgage rate quotes included in Freddie Mac’s survey were taken before the Fed said Wednesday it will pump $1.2 trillion into the economy in an effort to lower rates on mortgage loans and other and loosen credit. That is expected to drive first and second mortgage rates down further.  FHA rates even dipped below 5% for the first time since January.

The Associated Press reported the coming week having a series of economic reports that aren’t expected to show significant improvement in the nation’s economic health. But the mortgage market and housing sectors may get another lift if there are more signs the economy is at least not getting worse.

Perhaps the greatest potential influence this week will be the Federal Reserve’s assessment of the economy that will accompany its decision on interest rates after a two-day meeting that ends Wednesday. To try to revive the economy, Fed Chairman Ben Bernanke and his colleagues already have slashed a key lending rate to banks to a record low, zero to 0.25 %. They have pledged to use “all available tools” to revive the economy. One option is buying long-term Treasury securities to help further drive down mortgage rates and help the crippled housing market, economists said. Another option is to boost the Fed’s purchases of debt issued or guaranteed by mortgage giants Fannie Mae and Freddie Mac.

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20% of U.S. homeowners with mortgage loans are “underwater,” meaning they owe more money to their mortgage lender than their property is worth. Borrowers who have mortgage loans above the conforming and FHA loan limits are not eligible for the federal mortgage modification or refinance option.