In this dismal economic environment, a little bit of good news can go a long way. And that's exactly what emerged yesterday after the government announced its latest plan to jumpstart lending.

The Federal Reserve's plan to buy $600 billion worth of mortgage-backed securities and debt from Fannie Mae and Freddie Mac sent mortgage rates down significantly yesterday; that spurred the most interest in refinancing home loans the brokerage market has seen in a year.

Rates on 30-year fixed mortgages fell by around 50 basis points to 5.5 percent. While it's still too early to quantify the lending activity, the Wall Street Journal reported anecdotal evidence that refinancing volume spiked yesterday. Bank of America's call volume doubled and some mortgage brokers said they had the most activity they've seen in a year.

While that anecdotal evidence is positive, it's far too early to declare victory. Refinancing existing loans could help homeowners struggling to pay their adjustable mortgages and could even stave off some foreclosures. But it's not clear if the lower rates will go far enough to incite new buyers to enter the housing market. Yesterday, the latest Case-Shiller housing numbers showed that home prices fell by nearly 17 percent in September.

But there were other signs the credit market was pleased with the Fed's latest move. The spreads on Fannie and Freddie debt over Treasuries tumbled to their lowest level since October, Bloomberg reports. And the cost to insurance against default on corporate bonds and securities backed by commercial mortgages also fell.

When you throw everything but the kitchen sink at a problem, something is eventually going to stick.