Illinois Mortgage Rate Weekly Update
21st December 2007
It’s time again for the Illinois Mortgage Rates and News week in review, my take on the week’s financial news and how it affected mortgage rates.
This was another rip rocking week in the mortgage market as stocks and bonds seesawed back and forth with money rushing from stocks into bonds and by the end of the week back into sto![bull-and-bear-480[1]](http://www.ptmortgage.com/wordpress/wp-content/uploads/2007/12/bull-and-bear-4801.jpg)
cks. It all revolves around the question of what is happening with the economy. Is the real estate slow down and credit crunch about to infect the rest of the economy? Are we on the brink of a recession? Are we in one? Is the worst of it over?
No one knows the answer to these questions, and with the trend uncertain the markets are a scary place to be. One of the things to keep in mind here is that bad news for the economy is good news if you are looking for lower mortgage rates. Last week ended with mortgage bonds tanking on worries of the economy improving and inflation increasing. This week started with news signaling a slowdown, so mortgage rates started to improve. By mid-week bonds were in a full scale rally and it looked like the market had found its direction. But the rally didn’t last. Consumer spending came out higher than expected and in a 180 degree turn, traders are now convinced that the worst of the slowdown is over and our big worry now is inflation. Again. Bonds tanked, and the week closed with stocks soaring.
Over the week we had three days where lenders came out with their rates in the morning, and due to market changes re-priced before the day was over. One day the re-price was for the better, but on both Thursday and Friday lenders were changing their rates for the worse. What does this mean for you as a consumer if you are in the market for a mortgage and shopping interest rates? For one thing it means you need to compare rates at the same time. If you talked with one lender in the morning and another in the afternoon the market had changed and you were comparing apples to kumquats. The second thing it means is that unless you are willing to take a big risk, you are best served by locking in your interest rate when you make your application, instead of floating it hoping for a better rate.
So with all this volatility where are interest rates now? Just about where they were this time last week for most loan products. The rates fluctuated by about .25% over the course of the week, but in the end, the more things change the more they remain the same and we are right back where we started.
Here is what rates look like as of the end of today for an A+, full doc purchase on a 30 day rate lock with 0 points, and no origination fee. (Again, there are dozens of factors which affect mortgage rates and your ability to be approved for a loan. These rates may not fit your situation and this is just a sample of the programs that are out there. If you would like a quote for you personally, give me a call and I’ll take the time to find the rate and program that is best for you.):
Conventional loans up to $417,000
30 year fixed rate 6.00% 6.183% APR
15 year fixed rate 5.625% 5.744% APR
5-1 A.R.M. 5.75% 5.839% APR
7-1 A.R.M. 5.875% 6.483% APR
For Jumbo loans over $417,000
30 year fixed rate 6.875% 6.904% APR
7-1 A.R.M. 6.125% 6.229% APR
FHA LOANS up to $270,200 with 1 point origination fee
30 year fixed rate 5.875% 6.124% APR
Next week it is Christmas week, and mortgage bond traders, like the rest of us, will be taking some time off. This means that the market will be thinly traded, and it’s not unusual to see big moves on low volumes. There is not a lot of big news coming out, but expect volatility.
Here’s what the chart looked like for last week. Red means rates are moving up, green means interest rates are improving. Illinois Mortgage Rates and News signing off.
Illinois Residential Mortgage Licensee #5814
Peter Thompson is illinois Mortgage Broker
Contact illinois Mortgage Company Today !
Tags: Illinois mortgage rates, mortgage rate update
Contact Illinois
Mortgage Company Today.
Looking for Mortgage Chicago il ? get Best Advice from Illinois
Mortgage Broker
We Offers Illinois Home Mortgage Loans with best mortgage rates
Are you Looking for First Time Home Buyers Loan ? Find Free Tips and
Advice here
How to update yourself with Current Chicago Mortgage Rates ? The Answer is here.
Find the Maximum FHA Loan Amount in Your Area Here illinois
Fha Loans
December 21st, 2007 at 10:32 pm
[…] Read the rest of this great post here […]
December 24th, 2007 at 3:43 am
Great post,
Mortgage Interest rates are probably the most important part about buying a house. After all, your aim is borrow the money you need for the least possible cost, so you need to assess which type of interest rate is best for your particular circumstances.
December 28th, 2007 at 9:51 pm
[…] this week the rates went from up to down, and ended up just about where they were at the end of last week . Again, looking at these rates is just a snapshot of where they ended up. There was a big swing […]