Rates did go up Friday by .125%. But the good news is Home prices have and continue to drop in many areas. In Florida New Home Prices have dropped $30-75,000 because of huge drops in Land prices in many overvalued areas. This is not the case in all areas of the country but it is happening in many of the areas that went crazy with rising property values. Now they are getting their new tax notices and are not very happy campers. We still see many signs of the economy slowing down and yet the cost of living is rising. Ask anyone who has to pay their Medical Insurance premium or their property taxes this year. Ask them about their Homeowners insurance premium. Ask them about how much their Escrow Account is going to be adjusted on their Mortgage. If they have a Adjustable Arm they should be very worried. We see the clamor of higher prices all around us and it will make the consumer slow down or stop their buying of goods. We feel Mortgage Rates are going UP and will continue to do so. In many areas Homeowners cannot sell their home and are dropping their prices. This is great for the home buyer. But remember the Insurance premium and taxes are not fixed and can go up a lot. Buy the home you can afford and shop hard for the best price and interest rate and fees. The first thing is that you need to have good credit scores. You can check your credit scores online at My Fico.Com or Equifax.Next, you need to have some savings for a 5% or more down payment. Do you have a good way to save for a down payment? We highly recommend Emigrant Direct. They pay one of the highest rates in the country on their savings account, with no minimums, no fees.