Loan rates down, but proceed with caution

With mortgage rates down for the third week running, the temptation to jump back into the market is undeniable -- and perhaps advisable.

But industry observers warn to proceed with caution, watching for scams and sham operations and bracing for tougher requirements.

The new Good Faith Estimate form offers borrowers some protection but also opens the door to confusion, according to the experts at New York-based direct lender Equity Now.

Though HUD is supposed to enforce the GFE, Equity Now President Michael Moskowitz said not to count on that protecting you: "They never move fast," he said. "It's always the horse is out of the barn, now let's close the door."