Why would you expect your rate to go down? Mortgage rates are relatively unrelated to actions taken by the Federal Reserve, and completely unrelated to the prime rate. Interest rates on FHA-insured mortgages are set by lenders, not by FHA, so don't expect Congress or FHA to magically lower rates on an FHA loan. In fact, if this bailout plan goes through, bond yields could very well go up, which would drive mortgage rates up. If you're buying a home, you should lock your loan terms in close consultation with your loan officer, taking into consideration your closing date and the uncertainty to which you're currently exposed.

You need to be able to trust your lender as to help you with this decision. Of course, they can't tell you what to do but they do have insight as to which direction you should lean.