Is now the right time to jump into the housing market? There are certainly some great perks to buying in a down market. But the question always remains: Could I score a better deal by waiting just a few more months?  Right now the answer is ‘possibly’ according to a recent report from the Mortgage Bankers Association.

The MBA reported Monday that it had revised its prediction for total yearly mortgage loan volume downward this month thanks to rising interest rates and Treasury yields. The group now expects mortgage originations in 2009 to amount to $2.03 trillion, more than $700 billion lower than the March forecast.

Mortgage interest rates have jumped up in recent weeks, but with the 30-year fixed rate loan at 5.38 percent last week, according to Freddie Mac, they are still relatively low, historically speaking. So now may be the best time to buy before rates move any higher.

Yet, the MBA also predicted that home prices will continue to fall this year, until they are at least 10 percent lower than the median prices in 2008. So waiting another couple months might mean higher loan rates but lower sales prices. But also on any buyer’s side is the MBA’s forecast that both new and existing home sales will decrease, with existing homes slated to drop by 1.2 percent from last year and new home sales to plunge 27 percent. When sales are down, sellers are always more desperate and willing to negotiate in order to close the deal.

And of course, whether you can even buy now, depends largely on your credit score these days. If your credit isn’t up to snuff, you may want to wait several months anyway to try to improve it and increase your chances of getting approved.