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Mortgage rates fell slightly this week and remain near record lows, but it’s not clear if the cheaper financing will spark buying even as new home sales plunged to the lowest rate on record last month.

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U.K. house prices fell by a further 1.3% in January as the deepening recession and financial turmoil continued to weigh on housing market sentiment, Nationwide Building Society said on Thursday.

The House approved an $819 billion economic stimulus plan on Wednesday on a 244-188 party-line vote.

The Federal Open Market Committee ended its two-day meeting Wednesday deciding to leave the nation’s interest rate unchanged at the range of 0% to 0.25%

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The Federal Reserve plans to modify mortgages it controls in order to help reduce foreclosures, Fed Chairman Ben Bernanke said on Tuesday. Read more…

Mortgage finance company Fannie Mae says it’s likely to need up to $16 billion from the government as conditions in the U.S. housing market continue to deteriorate.

President Barack Obama urged lawmakers from both parties to back his economic stimulus package, saying the economy’s dire problems require congressional action even if some members object to portions of the plan.