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Borrowers descended on the home loan industry Wednesday after the federal government’s latest move to shore up the financial system sparked a sharp drop in interest rates.

Valley brokers said business picked up immediately as rates dropped from 6 percent to 5.5 percent and lower this week.

“We’re getting more calls for refinancing, and we’re getting more calls for purchases,” said Maxine Gress at Los Gatos Lending Connection.

Bank of America and Wells Fargo reported big jumps in the number of people calling to inquire about refinancing or buying a home, with significant numbers locking in low interest rates.

It’s too soon to say whether this is the long-awaited reawakening of the housing market, but the drop should at least spark a boom in refinancings of existing loans, mortgage brokers say. A longer period of low rates, combined with current low housing prices, could also move many potential home buyers off the fence and into the market.

After several weeks of decline, interest rates could be headed to their lowest levels this year. On a 30-year fixed mortgage, rates were about 5.25 percent to 5.5 percent, brokers said.

“This is such welcome relief for the consumer,” said Cathy Warshawsky of Bay Area Loan in San Jose, who is also president of the Silicon Valley chapter of the California Mortgage Brokers Association. “It’s so nice that the government is addressing the concerns of Main Street instead of just Wall Street.” Mortgage broker Jerry McClain of S&L Home Loans in San Jose said he’s had a surge in customer inquiries. “I have lots of people in line, getting ready to go,” he said.

The rate drop followed an announcement Tuesday by the Federal Reserve that it will spend up to $600 billion to buy debt issued or backed by Fannie Mae, Freddie Mac, Ginnie Mae and the Federal Home Loan Banks. Government officials hoped this would push down interest rates and thaw out a frozen housing market.

Bay Area buyers have another reason to act quickly. Until January, the limit on loans that can be sold by banks to Fannie Mae and Freddie Mac — resulting in lower interest rates for the borrower — is $729,750. This is significant in the South Bay, where home prices are higher than in much of the nation. The limit drops to $625,000 in January.

The cost of a loan can vary depending on the size of the loan, the borrower’s credit, down payment or equity, mortgage origination points, and other factors. An “apples to apples” comparison Wednesday by broker Forrest Cambell of Monterey Mortgage showed borrowers would have paid 5.875 percent Friday and 5.25 percent Tuesday, on a loan with 1.25 points.

Cambell said he thinks the spike in refinancing will translate into home buying later on.

But for that to happen, rates have to stay low.

“Last May, we had these wonderful rates, and all of a sudden one day it was over,” said Doug Jones of Mortgage Magic in San Jose. “These spikes — unless you have a customer sitting there ready to lock in, it’s of no value.”

The lower rates should be good news for the economy. “Anything that shores up the housing market or provides a little support to the market is a good thing,” said Economy.com’s chief economist, Mark Zandi. “The housing collapse is ground zero for the economy’s current difficulties. Any little bit will help.”

Bank of America spokesman Rick Simon said the bank’s call centers received double the number of calls Tuesday and a 70 percent increase in people locking in the low-interest rates. That volume continued Wednesday, he said.

Wells Fargo said it was experiencing “a significant increase” in contact from customers interested in a refinance or home purchase. “Low rates are only part of getting a mortgage, though,” said spokesman Jason Menke.

Banks are refinancing loans for people with good credit scores, equity in their homes and stable income. Home buyers need a hefty down payment, good credit and solid income.

“They are looking for income,” Warshawsky said. “They are not letting you do stated-income loans. That is a thing of the past,” she said. “They are looking for people who can actually afford to make the payments.” An acceptable credit score is 680 or above, Warshawsky said, “and most lenders are very appreciative if you’re over 720.”

Where will the rate drop lead? “We’re just a day into this,” said John P. Reeve of Mortgagebot. “With rates coming down, and home prices coming down, we think this is something that could kick-start the economy. We’re excited.”