The drop in mortgage rates is one of the key reasons why it's unlikely there will be a housing downturn as vicious as the one we saw between 2008 – 2010. It takes about 6 months for the effects of a large mortgage rate change to show up in the housing data. Pent-up demand is building as buyers take a wait-and-see approach to the economy. 90% of U.S. mortgages go to borrowers with a score of 650 or better. 75% go to borrowers with scores of better than 700. Meanwhile, the average credit score for the 50th percentile is about 760. (Financial Samurai).

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