Am I getting screwed by my mortgage broker?

My wife and I are in the early stages of the home-buying process. We went to get pre-qualified, and the mortgage broker was really nice, which I expected since he was recommended by a family member. There were 2 things that concerned me, however. First, he said our credit was outstanding, both over 700, and that would qualify us for the best rate. Then he said our rate would be 6.5 if we signed today. He could tell we seemed a little surprised, so he explained that rates fluctuate hourly, like stock prices. I do not believe they change that much, and I think the best rate would have been closer to 6 percent. Does the interest rate vary much depending on how much money is put down on the loan? Is our rate higher since our downpayment was just under 10%? Second question, isn’t there a way to avoid paying PMI if your total liquid assets are over 20% of the loan, even if that much isn’t put down?

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