After the Fed lowered the federal funds rate this week, 30 year mortgage rates hit as low as 4.5% in some circumstances yesterday before retreating back a little bit to the five percent range. Rates that low have not been seen for 40 years. Although I will say again that the federal funds rate has no correlation with 30 year fixed mortgage rates, which means sometimes they move together, sometimes opposite. But this time, mortgage rates took a huge dive after the Fed dropped their key rate to nearly zero.
Several mortgage brokers I talked to today have told me they have had very high call volume the past couple days with lots of inquiries on what rates are doable for re-fi's and purchases.
Rates in the low 5's are obtainable at this point for conforming loans (under $417K) if you have excellent credit and good equity in term of a re-fi or large down payment in terms of a new purchase. If you have a loan between $417K and $465K you're probably looking at a 1/8 or 1/4 percent bump up in rate. And for "jumbo", or non-conforming loans above $465K, the rates are much higher and in the 6.5%-7.5% range depending on circumstances. It could be better in specific cases to take a 1st mortgage under the conforming limit and add a second home equity line of credit (which are at much lower rates than the jumbo - as low as 4.25%+- for some) for the remainder if you are looking at purchasing or refinancing higher priced property.