As the nation's economic problems grind on, the government has shifted its recovery efforts into overdrive, according to Bob Walters, chief economist for Quicken Loans.

"We're obviously in incredible times," he says, adding that the government has gone beyond measured action. "Now they're throwing in the kitchen sink -- and they're pulling out the plumbing," he says. "They're really attacking this problem."

Thus far, most of the emergency measures have focused on shoring up the banking system, Walters says.

However, he now sees the government turning toward the source of the problem -- people falling behind on their mortgage payments. The Nov. 25 announcement that the Federal Reserve would buy up to $500 billion of securitized loans likely marked the opening salvo of a concerted effort to aid homeowners directly, Walters says.

"It's the first thing that's really assisting Main Street," he says. "Everything else was assisting the banking system and Wall Street."

Soon after the Fed announced its intentions, mortgage rates plummeted and are now near 45-year lows. "You saw mortgage rates drop by a full percentage point," he says. "That was direct stimulus."

Lower mortgage rates -- coupled with falling gas prices -- are helping consumers to better navigate choppy economic waters, Walters says. "Refinancing has exploded, and you're going to see that's going to put money into people's pockets," he says.

However, Walters says, the nation's financial and economic problems remain "diverse" and "severe," and he doesn't expect a quick turnaround.

"I've come to realize that there won't be any silver bullet," he says. "There won't be any one program that resolves it. There will be a lot of things, and there will be a lot of yelling and screaming because no matter what happens, somebody is going to be wronged.

"It's going to be messy, and we're going to have to continue to work out of it."

Getting in the game
Meanwhile, potential homeowners spooked by a crumbling economy and sinking home prices remain on the sidelines, waiting for better days before shopping for homes.

But that approach may be misguided, says David Kuiper, a mortgage planner at First Place Bank in Holland, Mich.

"Home purchases should be made from a long-term perspective, not a short-term one," Kuiper says. "I don't recommend worrying about if prices might drop farther. It only matters when you go to sell."

Trying to score the best possible price by waiting for the housing market to bottom is an "exercise in futility," Kuiper says. Instead, home shoppers should pay closer attention to mortgage rates, which have fallen to near 45-year lows.

"A slight increase in interest rates can wipe out the gains of a price drop in a heartbeat," he says.

However, the best deal in the world makes no sense if your finances are unsound, says Dan Green, a Cincinnati-based Certified Mortgage Planner with Mobium Mortgage Group.

"There's no sense buying a new home if you're going to stay awake in your new bedroom at night, wondering if you're going to make your payments," says Green, who also writes TheMortgageReports.com.

Walters agrees that individual homeowners must assess their own financial circumstances before wading into the market. "If you think you are on thin ice as far as your job, and you are renting, maybe you continue to rent," he says.

On the other hand, consumers whose finances are solid can find great deals right now, he says. "Housing affordability has gone up substantially," Walters says. "So for those who do have a job and feel decent about it, I think it's a pretty good time."

Wait to refinance?
If you already own a home, now may be the perfect time to refinance. Mortgage rates have fallen sharply since the Federal Reserve announced it would buy up securitized home loans.

Some homeowners may be tempted to wait for rates to fall even further. In recent weeks, there have been rumors that the Treasury Department might buy up mass quantities of mortgage-backed securities as a means of driving down mortgage rates as low as 4.5 percent.

However, Kuiper warns against procrastinating. "It is wiser to make an informed decision than to postpone a decision based on speculation," Kuiper says. "If rates decrease in the future, it is cheap and easy to refinance."

Cameron Findlay, chief economist at LendingTree.com, also urges homeowners and home shoppers to act now. Rates have fallen so quickly -- and by so much -- that it's "very unlikely you will see a decline of that magnitude again anytime soon," he says.

"For borrowers, this is the eye of the storm," he says. "Take safe haven in this low-rate environment while you can."

Tightening credit conditions provide an extra reason for people to refinance now instead of later, Green says.

Homeowners whose monthly debt exceeds 45 percent of their income and people trying to refinance investment properties are "the next two groups to be eliminated," Green says.

Take-away
The Federal Reserve's decision to cut the federal funds rate by at least 75 basis points is unlikely to have a major impact on mortgage rates, which are not directly linked to Fed actions.

However, mortgage rates have plunged in recent weeks, making this an excellent time to secure a new loan or refinance an existing mortgage.

Bankrate's rate tables can help you compare mortgage rates in your area.

Bankrate can also help you calculate whether a fixed-rate or adjustable-rate mortgage is better for you.

To determine whether refinancing is right for you, use Bankrate's mortgage calculator.