Over the past year or so, the daunting task facing potential homebuyers hasn’t been locking in on a low mortgage rate, it has been whether or not you can qualify for financing amidst the strict lending conditions. The last issue of HSH’s Market Trends Newsletter, “Rates Ease Back Slightly,” compares it to “a group of penniless children staring in the candy-store window: You can look, but you can’t buy.”

“Mortgage rates eased back a little bit [last] week. Although the price of money is quite attractive, the availability of it remains difficult for many borrowers.”

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According to the latest issue of HSH’s Market Trends Newsletter, “No ‘Stress’ on Mortgage Rates,” as the economy slowly pieces together the components of a recovery, mortgage rates remain relatively stable at their current historic low.

“Everyone keeps scanning the horizon, hoping to see the good ship Economic Recovery that’s surely out there somewhere. There’s still no indication of just when our ship will come in, but some market watchers think they’re seeing, just maybe, the merest glimpse of that elusive vessel.”

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Jumbo mortgages, a home loan of over $417,000 in most parts of the country and $729, 750 in others, are a fading product in today’s mortgage industry. The inflated loan amount presents added risks for lenders, forcing them to increase the restrictions and qualifications they place on borrowers.

Moreover, the government’s latest initiatives aimed at lowering mortgage rates aren’t designed to help the jumbo market. The Fed’s decision last week to increase their commitment to purchasing Fannie and Freddie mortgage-backed securities sent conforming rates plunging — increasing the interest-rate spread between conforming and jumbos to 1.56%.

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