Lending Landscape - October 18, 2007

Mortgage rates were unchanged this week as anticipation of the Fed's next meeting at the end of the month has many analysts speculating on the future of rates. CNNMoney reports -

Mortgage rates were flat this week as the housing industry continues to experience high inventories and slow sales, Freddie Mac reported Thursday.

The government-sponsored loan buyer said the rate on a 30-year fixed-rate loan averaged 6.4 percent for the week ended Oct. 11, which was unchanged from last week.

Last year at this time, 30-year mortgage rates averaged 6.36 percent.

Other loan terms; 15 year, 5 year and 1 year saw little change as well. The benchmark 10 year bond has dropped quite a bit this week, so expect fixed rates to drop in the coming week.

Speculation over the Fed's next rate move could add some volatility to both the stock and bond markets as the end of the month nears.

For prospective home buyers, FHA loans have returned as a viable and cost effective program. Loan limits for Utah were raised in the spring putting many of Utah's new homes squarely into the program's parameters. FHA loans allow first time home buyers and people with less than perfect credit the opportunity to buy a home with little money down.