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Remember I told you to sit tight on that mortgage rate lock until after the Bailout Bill was passed?

Well, it failed.

Mortgage rates are a little better than they were this morning. This morning a 30-year fixed par rate was at 6.0%; this afternoon, it was at 5.875%.  If you're closing on your home loan in 30 days , there is more risk that you'll get a rate over 6% than under 6%.  Lock your mortgage rate if you're closing in October.

If you have time, wait it out.  The bailout bill failed but it isn't dead.  If the bailout bill DOES ultimately fail, mortgage rates will skyrocket, housing prices will tank, and you'll probably renegotiate or cancel that home purchase.

When the bailout goes through (and the whining on Wall Street will be so loud that it WILL go through), mortgage rates will come back down.

PS:  If you're a baby boomer, this is your worst nightmare. Most of the people over 55 have most of their retirement assets in the stock market, through mutual funds in their 401-k plan.  If you're a real estate investor or buyer, this might be really good news.

PPS: Did you know that Main Street already got bailed out? I'll talk about that next time.

Brian Brady is a Managing Director with World Wide Credit Corporation, a San Diego-based mortgage banking and brokerage firm. Google calls him America's #1 Mortgage Broker; you can call him at (858)-777-9751