Mortgage rates have dropped down this week amidst a reduction in consumer spending and weakening job market.

30 year fixed mortgage rates will be available at an average of around 6.20% this week. It seems that the fixed rates have gone down from 6.46% last week. Even though rates have dropped down, things don't seem to do well for mortgage lending.

Lenders have tightened their lending standards in the midst of record number of foreclosures. Around 70% of banks providing prime loans and 90% of banks offering non-traditional loan programs have raised their lending standards. So, things aren't looking that great but let's keep our fingers crossed and hope for the best.