Nationwide, mortgage activity AND rates are down

With mortgage rates continuing to drop, one might expect a surge in mortgages.

Last week, the average mortgage rate was 5.58%, the lowest level since October 2004, but mortgage applications were yet down again.

Of course, such data always ensures real estate bubble talk. Overall, most analysts think the market is relatively stable.

"I attribute the spike in refinance applications over the last two weeks to continued low interest rates and a build up created by the inactivity of the holiday season," said Neil B. Garfinkel, Esq., a lawyer at a New York-based real estate law firm. (Read more on this Reuter's story)