Lending Landscape - February 7, 2008

Mortgage rates continued to hover at near record level lows in the past week. Concerns for the economy should keep them at this level for some time to come.

The government-sponsored loan buyer said the rate on a 30-year fixed-rate loan averaged 5.67% for the week ending Thursday, down from 5.68% last week, and still well below rates at this time last year Freddie Mac noted.

At this time last year, the 30-year fixed-rate mortgage averaged 6.28%, Freddie Mac said.

Congress approved a financial stimulus package that besides handing out cash, will raise the loan limits for conforming and FHA loans for six months this year. In combination with lower rates, this could allow new home buyers additional purchase power. While many new homes in Utah fall well within FHA ($366,000) and conforming ($417,000) loan limits, the temporarily higher limits could make stretching for a dream home worthwhile.