Orange County Register

Mortgage rates dropped quickly in Orange County earlier this week after the Federal Reserve announced a plan to pump $600 billion into the mortgage market in an effort to stem foreclosures and sliding home prices.

As my colleague Mortgage Insider Mathew Padilla reported, the best rate on a 30-year fixed-rate mortgage up to the old conforming limit of $417,000 fell half a point to 5.25% with a one-point fee, down from 5.75% a day earlier.

Refinancers like to take advantage of a drop in interest rates, though in this downturn, reduced credit scores or dimishing home values could put the kibosh on that.

“If these rates hold, you’ll see these refinance applications really start to take off next week,” Marc Savitt, president of the National Association of Mortgage Brokers, told the Associated Press.

So, what do you think?

Read more:

• How far is ‘just steps’ to the beach?
• A house along the wetlands for $1,095,000
• The Surf City “Zippys,” 3Q
• For auction: Steal, deal or ‘get real?’ (New post! 11/25)
• Which Surf City house has more curb appeal?
• A down side to Freddie & Fannie’s holiday gift?
• Measuring demand for real estate in Surf City
• He gives a crash course in real estate to lenders, trustees
• Surf City’s mayor-elect: ‘Let the market dictate’
• Should you buy a model home?
• How to protect your home –wherever it is — from fire

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