Mortgage brokers in the Golden State are predicting a surge in fixed rate refinances next year.
"Fixed rate loans are making a comeback for those who are refinancing while alternative loan products are likely to remain popular because of high housing costs," said the president of the California Association of Mortgage Brokers, Jack Williams in an announcement today.
The prediction was part of an annual mortgage forecast based on a survey of 400 trade group members.
More than one-third of the participants saw rates rising by less than one percent next year, less than one-third predicted rates won't change and about one-quarter forecast decreasing rates.
"Interest rates will remain extremely favorable to borrowers in 2007," Williams added.
Interest-only loans will be the most viable product for high-priced California real estate, according to the survey -- which was undertaken in October and November.