Our friends at Freddy Mac announced this week that 15 and 30 year fixed rate mortgages have fallen to their lowest levels since 2004.

Looking at the average rate for a 30 year fixed, and noting that we had a decline of 21 basis points, rates fell from 5.69% to 5.48%. Similiarly, the 15 year fixed fell 26 basis points and ended the week at a rate of 4.95% (yes, that’s right).

Again quoting Freddie Mac, we saw adjustables also fall to their lowest levels since 2005. The average one year adjustable is now available for 4.99%.

The timing of the recent three quarter point rate cut, along with the magnitude of the cut was extraordinary. We haven’t seen a rate cut this large since 1984, and its been over six years since the Fed cut rates outside of their normal meeting schedules.

We’re expecting an additional rate cut when the Fed has its scheduled meeting this week, so if you haven’t geared up your property searches lately, now would be a good time to start. We’ve seen a ton of new activity on our listings and properties “under contract” has increased dramatically already in 2008.