Due to the goverment buying Fannie Mae debt (mortgage backed securities), rates have once again come down to the 4.5% range. Provided you have a 740 middle ccredit score and a loan to value of 80% or less. And these are conventional rates, not government (FHA and VA); those rates are a little bit higher.
Market sentiment seems to be improving, and when this happens, yields on govenment debt (bonds and treasuries) begin to rise. And since Fannie Mae has to compete with government debt in the open market, they typically raise their rates as well, which translates into higher mortgage rates. This is usually the case, but because of all the uncertainty and volatility in the market, it is not always the case. in my opinion, i don't see rates getting any lower than they are now, so for those of you who have been waiting to act, now is the time.
To make matters worse, lending criteria continues to get stricter, making it increasingly more difficult for some to obatin a mortgage. Just another reason to act sooner than later, because eventually, rates are going to start going back up.