While there are certainly some in the housing market celebrating record low interest rates, a new report from Fitch Ratings suggests that low-income subprime mortgage borrowers will see little benefit from the low rates.

Roughly 40 percent of prime residential mortgage backed security holders have been able to refinance their loans to take advantage of low interest rates, according to Fitch. Homeowners with adjustable rate mortgages, meanwhile, have seen their interest rates slide from an average of 5 percent to roughly 3 percent.

Subprime borrowers haven't had the same success with renegotiated loans, Fitch finds. Only 5 percent of those with subprime RMBS loans have been able to renegotiate to a lower interest rate, while those with adjustable rate mortgages have seen paltry improvements in their interest rates. Average subprime ARM loans decreased from 7.8 to 7.6 percent.

The prospects for proposed expansions of government programs aren't good, Fitch says, considering the opposition climate in Washington. Loan modification programs are subprime borrowers' best bet, with principal reduction modifications having slightly more benefit to borrowers than interest rate adjustments. Still, Fitch expects a more than 50 percent re-default rate on all mortgage modifications.

VA home loans face a much smaller risk of default, according to recent VA statistics. Foreclosures on VA backed loans fell by 28 percent last year.

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