It's pretty tough out here

Well the good news is that many homes are selling for 50 to 60% of what they had sold for in 2005 to 2006. This really means that buyers have a lot of options available and they can now buy homes that were completely unavailable to them a mere 3 years ago. The other good news is that interest rates are insanely low, anywhere from 4.625% to 5.55% depending on the program, the down payment, the points, and your particular credit worthiness.
The bad news is that most banks are still looking for excuses as to why not lend to you. Buyers should do everything within their power to make themselves as mortgageable as possible since we have now reached what I call the "Perfect Storm" of Real Estate. We now have very low prices coupled with very low interest rates. This is an awesome time to buy if you can. Best of luck to all of you!