By CHRIS KISSELL, bankrate.com

Low mortgage rates continue to lure some people into applying for mortgages, but enthusiasm remains tepid at best. The four-week moving average for mortgage purchase applications is up just 2 percent on a seasonally adjusted basis, according to the Mortgage Bankers Association

Today's mortgage rates remain near record lows, and that has lit a fire under refinance activity.

Jim Sahnger, a mortgage consultant with Palm Beach Financial Network in Stuart, Fla., says he's noticed a significant uptick in home loan activity as rates have fallen.

"People recognize the great value that exists," he says.

For the first time in two years, the U.S. housing market is going to have to stand on its own feet. After April 30, new homebuyers no longer will be eligible for a federal tax credit of up to $8,000 for first-time buyers or $6,500 for move-up buyers. The credit's sunset marks the end of a string of homebuyer tax breaks dating back to the spring of 2008.

Where did all the home sales go?

That question has been on the minds of many mortgage professionals. The expansion of the federal homebuyer tax credit last fall has failed to produce the expected surge of home purchases thus far.

Instead, sales of new homes have fallen for four straight months, while existing home sales have declined in each of the past three months.

Home sellers and buyers have just two months -- until April 30 -- to agree to a deal if they want to qualify for the federal homebuyer tax credit. As the calendar creeps closer to that fateful day, who will be in the catbird seat: buyers or sellers?

The government's latest effort to spark new life into the nation's slumping housing market appears to be yielding modest results, according to mortgage professionals in three hard-hit states.

As U.S. home sales rebound, hopes have grown that 2009 will be remembered as the year residential real estate finally bottomed and began to heal. But while some economists predict rising home values over the next 12 months, others are pessimistic.

"I think 2010 will be a challenging year," says Bob Walters, chief economist at Quicken Loans.

Is it too late for first-time homebuyers to snag the federal government's $8,000 tax credit?

The credit -- intended to boost flagging home sales -- is set to expire Nov. 30. Congress is weighing several proposals to extend the tax break into 2010, but passage remains uncertain.

First-time homebuyers across the nation are scrambling to close on their purchases before the scheduled Nov. 30 expiration of the government's $8,000 housing tax credit.

How much lower will mortgage rates go?

That question is on the lips and minds of mortgage shoppers from Seattle to Miami. In recent months, rates have sunk to near historic lows, presenting Americans with a rare opportunity, according to economist Bob Walters.