Mortgage Rates have dropped considerably in the last day.  Thirty year fixed rate conforming loans (up to $417,000) are being priced under 5.40% APR.  Just a quick check and I found Wachovia is offering 5.25% (5.364% APR) and QuickenLoans was offering 5.125% (5.353% APR).  Paying a couple of points will likely bring you a nominal rate of under 5.00%.

Unfortunately, thirty year fixed rate jumbo loans (over $417,000) are still priced high.  They seem to be priced at 1.50% to 2.00% over the conforming rates, putting them in the 7% range.  The 5/1 Adjustable Rate Mortgages are priced much better for jumbo loans.   Checking with Wachovia, they had a 5/1 ARM at 5.625% APR.