Interest Rates Down! (But only for a few hours?!)

I received an email today from a mortgage lender I work with saying rates may come down to a 52 week low of 5.875%. That is a great rate especially combined with the low prices already out there. However, rates can change with the blink of an eye so you really need to be on top of things and have a great lender who is even more on top of things. A lower interest rate can mean more buying power. I always tell my buyers, look at your monthly payments rather then the actual purchase price. Don't get hung up on a price especially with the rates jumping around like they are. On a $300,000 purchase, the difference in one percentage point can be as much $200/month. Would you rather spend that $200 on a nicer house or just hand it over to the mortgage company? Personally I would take the nicer house.