Mortgage Rates Headed Down

We knew that the government would probably make the move that they did to shore up Fannie Mae and Freddie Mac.
Without an institutionalized mortgage-backed securities market, mortgage capital eventually would have been less predictable and more expensive, and adjustable-rate mortgages would become the standard loan for homebuyers, as would higher down payment requirements. The 30-year, fixed-rate mortgage as we know it would no longer be readily available for most homebuyers and might effectively disappear. The result would probably be a dramatic decline in homeownership rates in California and across the nation.
But now that they have made the decision and the mortgage market seems more secure, we are discovering an unexpected bonus. Interest rates have dropped precipitously. In only one day, conforming rates have fallen more than a half percent, and seem to be headed even lower. Time to refinance? Time to buy?