Expect rates to improve shortly, as the bond market may bounce upward enough to make perhaps a 1/8 point rate improvement by early afternoon. Rates may remain low a little longer, but the Feds have publicly announced that they will not be plumping up bond prices when they (the Fed) stop their participation in treasury bond purchases in late October – which will probably translate into higher mortgage rates.
Quick calculation: Today’s current 30-yr fixed rate of 5.125% provides a borrower with about 5.5% more buying power than a rate of 5.625%. This translates into $400,000 mortgage, rather than a $378, 350 mortgage. This calculation also demonstrates why you want to get updated input from your borrower’s lender so the borrower can take advantage of greater buying power, if rates are less now than they were when the borrower qualified for their loan.