Mortgage Rates Drop USA Today has a great article mentioning the recent drop in mortgage applications. The old standard 30 year fixed is currently 6.66%. Remarkably despite all the media coverage of the real danger of ARMs,

The ARM share of activity edged up to 30.7% of total applications last week from 30.5% the previous week. It was the highest ARM share since late January

People seem to be using them - largely because the interest rates still trail 30 fixed but by less than a percentage point. Seems to me the market certainly in California is still frothy.  ¶ Mortgage Rates Drop