Ironically, one of the big losers over the past few years in the mortgage business -- holders of adjustable-rate loans, both prime and subprime -- also will benefit as overnight rates, also referred to as Libor, fall. Resets for adjustable mortgages are expected to be less severe in 2008 than in previous years.
Again, though, don't expect the trend to last, as the Fed has been indicating its rate-cutting posture is at or near a close.
"If you have an adjustable-rate resetting this year, the reset itself will be pretty manageable thanks to the rate cuts by the Fed," McBride said. "But you wouldn't want to delay refinancing for too long, because you could very will miss out on the opportunity to lock in a fixed rate at 6 percent. Ultimately that's a good place to be."
Brian Simon, senior vice president at Freedom Mortgage, in Mount Laurel, NJ, said the Fed may have another cut left.
"I don't think another quarter would be out of the question," he said. "This rate cut did have some immediate effect on the market, which I think was good."
But Simon also thinks rates will rise and hopes that the consumer at least will benefit by some loosening of credit.
"From the consumer's perspective hopefully we'll see a little credit loosening for rationality sake," he said. "I think the rates definitely will creep up and that's probably a good thing, because it will help the market settle down a little bit while everybody works through their credit issues and liquidity issues."