One positive factor of a weak housing market is that interest rates on mortgages continue to drop. Banks want credit worthy buyers to borrow money and are willing to reward them with low interest rates.

Currently, 80% of major US cities are reporting an average fixed rate mortgage rate of less than 5%. Rates have been falling steadily and the trend is expected to continue for the foreseeable future before finally stabilizing. Once it levels off, the rate will likely stay low at least until the market begins to recover, whenever that may be. Here is a snapshot of the mortgage rates in 10 American cities.

As is common, the most popular loans are those for 30 year fixed rate mortgages. Bankrate.com shows the average mortgage for these 10 major US cities to be at an average of about 4.8% on a 30 year fixed rate loan with a 20% down payment: Atlanta, Boston, Chicago, Dallas, Los Angeles, Miami, New York, Phoenix, San Francisco and Seattle. Aimloan.com is offering the lowest rate with a standard 4.668%

Keep in mind that these figures apply only to loans of less than about $417,000. Credit scores required of the borrowers are high, hovering at around 700. Anything lower will generally mean a rate of at least 1% higher.