The U.S. economy continues to struggle with new reports of financial melt-downs almost daily. The government home loans continue to provide the best home financing solutions with FHA home loans.  New homebuyers like FHA loans for purchasing and current homeowners like FHA for streamline refinancing and cash out refinance opportunities. Will our government continue to bail out struggling mortgage lenders?
Unfortunately investors began to dump U.S. debt which has caused conforming and FHA mortgage rates to rise again.

According to the Mortgage Bankers Association, the 30 year fixed mortgage rate topped the 6 percent to end the week at 6.08 percent, up 0.26 percent from a week ago. The 15 year fixed rate mortgage jumped 0.30 percent to 5.84 percent and the 1 year adjustable mortgage rate increased from 6.95 percent to 7.01 percent throughout the week.

FHA mortgage loan application volume was down 10.6 percent on an adjusted basis and down 11.1 percent on an unadjusted basis for the week ending September 19, 2008. Compared to one year ago, FHA mortgage loan applications were down 9.3 percent. The Mortgage Refinance index dropped 11.2 percent to 2043.4 from the previous week and the seasonally Adjusted Purchase Index decreased 10.0 percent to 342.2 from one week earlier. The Conventional Home Purchase Index decreased 10.4 percent while the Government Purchase Index (largely FHA) decreased 8.9 percent.  Get more insight at FHA Mortgage Services.