Update from Bank of America
I receive a weekly update from B of A regarding the current interest rates. Looking at it on a weekly (if not daily) schedule really helps put the market in persective. Right now, a 30 year fixed rate loan has an interest rate of 5.375 (5.549 APR) for a conforming loan (up to $417,000 loan amount). That is the lowest I've seen it in a long time. A 30 year fixed for an FHA conforming loan is going for 5.5% (6.029 APR). A 30 year fixed rate for a Jumbo Loan ($729,750 to 3,000,000 loan amount) is at 6.5 % (6.708 APR) right now. Also B of A is saying this is a good time to apply for a Veteran's Loans - they are lending up to 100% of the purchase price and as of right now, they are saying they can still close by the end of the year.
My 2 Cents - I would also advise checking out your credit unions or opening an account with a credit union. They have very competitive rates and they also have money. I recently did a transaction where my Buyer borrowed money from their credit union and it went very smoothly.