Here we are on the first business day of the New Year, and we are already off to a wild start. How wild?

• The ISM National Manufacturing Index came out with a reading of 47.7, much lower than expected. A reading under 50 suggests that the economy is slowing down with the threat of a recession on the horizon.
• Oil prices hit $100 per barrel for the first time ever.
• The minutes from the last Fed meeting were released and showed that the Fed is expecting the economy to weaken due to the housing slump and low consumer spending.
• There’s violence in Kenya and more unrest in Pakistan.
• The stock market started out the New Year with a very bad day.

So how did all this turmoil impact Illinois mortgage rates? Mortgage backed securities moved higher, extending their streak, and mortgage rates dipped lower. Illinois mortgage rates can again be had for under 6.0%.

The last time Illinois mortgage rates dropped down this low was about a month back. The low rates only lasted a couple of days before jumping back above the 6.0% mark. More information has come out that the economy is slowing, and bad news for the economy is good news for those wanting lower mortgage rates. The betting now is that the Fed will cut rates again at their next meeting later this month.

I think the long term trend is going to be for lower mortgage rates. But the news is still a mixed bag. High oil prices can be seen as inflationary and money flowing into bonds because of foreign unrest can flow out just as quickly. If you are thinking of buying a home or refinancing your mortgage this could be your chance to take advantage of the low rates now.

Tomorrow there will be more economic news to move the market. The Iowa Caucuses will kick start the next phase of the Presidential election, bringing more uncertainty to the political arena (except for the certainty that our next President will not be George Bush). Friday the employment report comes out and this is always the report that gives traders ulcers and makes the markets rock and roll. The New Year is starting out wild, and chances are that this will be a wild, wild year.

Illinois Mortgage Rates and News

Tags: Fed meeting, Illinois mortgage rates, interest rate trends

Free Mortgage Quote:

Get Best Advice from illinois mortgage broker

Contact Your illinois mortgage company Today

Find the Maximum FHA Loan Amount in Your Area Here illinois FHA loans

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.

Looking for mortgage chicago il

Chicago FHA loans

We Offers illinois home mortgage Loans with best mortgage rates