It's "official". Mortgage rates have hit four-year lows (since March 2004).
"The national average interest rate on the benchmark 30-year, fixed-rate loan averaged 5.48% in the week ending Thursday," wrote Michelle Donley of MarketWatch on January 24, 2008, citing Freddie Mac's survey released Thursday.
In CA, today we would be able to get our clients a 5.125%, 30 year fixed, no point conforming loan. Last week we found a just over 6%, 7/1 ARM, no point jumbo loan. [Rates change daily.]
Mortgage rates have been trending down of late. With a January 29th FED meeting and a market expectation of another 1/2% drop, I expect we will see interest rates drop a bit more in the next few weeks.
If you have a variable rate loan that is set to reset in the next, say year, then I would seriously consider grabbing this fixed rate NOW. Annecdotally, I'm told, election years always create temporary fear of the unknown and interest rates (not necessarily the FED rate) typically go up prior to an election.
If you are in CA and think now would be a good time for you to refinance, feel free to write us at aboyer@SDFRealEstate.com