After rates dropped a few weeks ago, they bounced higher last week after the credit market news. The hysteria in the market should settle down over the next couple weeks. I expect rates to drop back under 6% before the end of year.

"Average mortgage rates were nearly unchanged during the past week, leaving rates above the levels of two weeks ago," said Frank Nothaft, Freddie Mac vice president and chief economist, in a news release. "Reflecting the rate uptick from two weeks ago, the Mortgage Bankers Association reported that loan applications were down 23% last week."

Link to CBSMarketWatch