Rates for 30-year mortgage rates dropped this week to the lowest level in six months, but the break for home buyers may not be enough to buoy sagging sales in San Bernardino and Riverside counties.

Mortgage giant Freddie Mac said that 30-year, fixed-rate mortgages dipped to 6.4% this week, down from 6.43% last week. That puts the 30-year mortgage at the lowest level since late March when it was 6.35%.  Declining fixed mortgage rates are influenced by the bond market that is anticipating lower inflation and slower economic growth.

Lower fixed interest rates may provide an alternative to homeowners with adjustable rate mortgages that started at submarket teaser rates and have steadily climbed.  But fixed rate mortgages aren't low enough to make homes much more affordable to would-be buyers at today's high prices, he added.

And there is even less relief for home buyers in adjustable rate market, Adibi said, even though adjustable interest rates have fallen slightly in response to the Federal Reserve Board's decision to stop raising the short-term interest rates in June after 17 consecutive rate increases. At the Federal Reserve Board's last two meetings, in August and this week, it held pat.

Still, while one-year adjustable rate mortgages declined from 5.83% in July to 5.54% Thursday, the drop translates into a $55 savings on a $1766 monthly house payment for a $300,000 mortgage

Real estate agents said despite lower interest rates and price reductions offered by more builders and private sellers, prospective home buyers are sitting on the fence, waiting for something more dramatic to stir them to buy.

Kevin Bowlin, Inland Empire regional manager of American Financial Network in Temecula, said he has seen about a 10% increase in applications for loans over the last 30 to 45 days. But he said about 70% of the applications are for refinancing and 30% for home purchases. A year ago, he said, 60% of the loans were for purchases and 40% for refinancing.

Edwina Baniqued