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 Illinois mortgage rates. Over the last month or two we’ve been in a see-sawing, back and forth, up and down market with mortgage interest rates trying to find direction. Mortgage rates go up or down based on movement in the mortgage backed securities market. Mortgage bonds improve when there are signs of economic weakness, and they get worse when there are signs that the economy is growing and there is a threat of inflation. Over the last few months we’ve changed directions every few days as the market reacted to the latest economic news, up for a few days, down for a few days, the trend going back and forth. Now, with the start of the New Year, I think a major trend has been established, and we are more likely to see lower mortgage rates in the future.

This morning the jobs report came out and employment increased by 18,000, much lower than the 70,000 jobs that were projected, and the unemployment rate increased from 4.7% up to 5.0%. Even the 70,000 projected figure is low. It takes about 150,000 new jobs per month just to absorb new entrants to the job market. The employment number is usually the most watched economic indicator of the month, and the softness in the job market is another sign that we may be heading for a recession. This makes the odds that the Fed will cut their rates again at their next meeting a near certainty. The question is whether they will cut another .25% or a full half point.

Other news from this week has been along the same lines. Manufacturing was down more than expected and home sales were down, as expected. There is still some news that shows inflation is still a threat. Oil prices hit the $100 per barrel price this week, which means higher prices at the pumps. But if wages aren’t going up, this is more likely to mean that consumers have less to spend and not that prices are going out of control. The net result of all this is that Mortgage bonds are up slightly on the news today, and Illinois mortgage rates are slowly dropping.

With all the information pointing to an economic slowdown, does this mean it is a bad time to buy a home? I don’t think so. Whether buying a home makes sense or not depends on your personal situation. If you are in the market for a home the inventory of homes available is high, and it is a buyer’s market. So you are more likely to get a deal that works for you. The economy here in Northern Illinois and around the Chicago area is diverse, and stronger than much of the country. Real estate is local, and the Chicago area never experienced the extreme highs that some other areas saw, and we’re not seeing the drop in prices those areas are seeing now. If you are buying for the long run real estate has always been a great investment.

Here is what Illinois mortgage rates look like 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 your personal situation, give me a call or contact me 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    5.75%      6.838% APR

15 year fixed rate    5.125%    5.237% APR

5-1 A.R.M.               5.375%     5.649% APR        

7-1 A.R.M.               5.50%       5.847% APR

For Jumbo loans over $417,000

30 year fixed rate    6.25%       6.375% 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    5.50%    5.823% APR

These are just a sampling of the rates available. We have special programs for first time home buyer and all the bond programs including the City of Chicago Bond program and the State of Illinois Bond program with no down payment below market pricing. There is not a lot of economic news coming out next week, so it should be a quieter week next week.

Illinois Mortgage Rates and News.

Tags: first time home buyer, Illinois mortgage rates, mortgage market review, weekl rates update

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