Welcome to Illinois Mortgage Rates and News week in review for the week ending April 24th, 2009, my take on the week’s financial news and how it affected Illinois mortgage rates.

With no major economic news released and no big announcements or surprises of any kind, this was a boring week in the mortgage world. But that’s not a bad thing. Boring is another word for stable, and it has been a long time since the mortgage market has been described as stable. This mortgage market has been ruled by volatility and it hasn’t been out of the ordinary for lenders to re-price two or three times within a single day. This is one of the things that most consumers aren’t aware of, that rates are constantly changing and the rate quoted in the morning may have expired before the afternoon hits. (This is why it makes no sense to shop mortgages by looking at ads in the newspaper, when the rates quoted were probably out of date before they were even posted.) But that was then and this is now. This week there were ups and downs both during the day and over the course of the week, but the fluctuations were small and all fit in a tight range. I’ll take boring and stable over the adrenaline inducing shift from highs to lows and back again, any day.

As I’ve written before, there is one big factor behind this new stability. The Fed is buying mortgage backed securities and the Fed rules the market. Over the last few months we have had swings in prices, but even when rates spiked higher, the Fed was there to provide a ceiling on how high the rates could go, and keep mortgage rates much lower than they would otherwise be. Now, the other market participants are adapting to this new reality and that means they are trading opportunistically as mortgage bonds move up and down, but they are keeping in the range the Fed has set. This means stability. I don’t know that rates are going to fall much further, every time they drop to the low point of the range they pop right back up. But I don’t see rates heading a lot higher any time soon, either. At least that is the view this week. Next week a new set of data or a new treasury announcement could come out which will throw the market out of this range, but for now I am enjoying the relative calm.

As to the economy in general, there is hope that we may be nearing the end of the worst phase, and while boom times might not be ahead, we are starting to stabilize. Fed Chairman Ben Bernanke talks about evidence of “green shoots”, home sales came in better than expected, industrial production while awful was also above expectations, and some experts think that job losses have peaked. That is the good news. On the dark side, Chrysler may file for bankruptcy this coming week and GM is in the same dire straights. If this happens ripples of pain will radiate out throughout all the support industries and we may sink lower. A lot of new information is coming out next week, and a lot of events which have the power to move mortgage rates, possibly out of the current range. The Federal Open Market Committee is meeting Tuesday and Wednesday, and while there is no chance that they will raise rates (and with rates effectively at 0 they can’t lower them), what they say in their announcement can move the markets. The Treasury will also be auctioning off more bonds and the increase in supply could put pressure on mortgage rates. With consumer confidence, initial jobless claims and several other reports due out next week, we may not see the same calm seas in the mortgage market next week.

Mortgage rates this week are virtually unchanged from last week. We are still in an all time low range, and if you are in the market to buy a new home in the Chicago area, or refinance your Illinois mortgage, this is a great time to take advantage of the low mortgage rates. The Home Affordable DU Refi Plus program is also out, and this allows many home owners to refinance at low rates even if they have lost equity in their home.

Here is what Illinois Home mortgage rates look like today for an A+ (740 Fico or above), full doc single family home purchase or rate/term refinance on a 45 day rate lock, with 0 points, and no origination fee. The conventional and FHA rates are based on the highest conforming loan amounts, which give the best pricing. Again, there are many 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, or to get pre-approved for a mortgage, give me a call or contact me (Illinois mortgage company) 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            4.875%     5.069% APR

15 Year fixed Rate           4.625%     4.724% APR

5-1 A.R.M.                        4.50%        4.701% APR

For Jumbo loans over $417,000

30 Year Fixed Rate*          5.75%       5.894%

*Best rates are based on 70% LTV, 760 and above FICO single family homes.

7-1 A.R.M.                         5.125%       5.279% APR

(For smaller Jumbo loans another option is to break your loan into 2 parts – conventional to the limit and a HELOC or second mortgage for the rest.)

FHA LOANS – 3.5% down payment – FHA Maximum varies by County

With 1 point origination fee – 45 day lock

30 year fixed rate              4.75%      5.339% APR

With no origination fee – 45 day lock

30 year fixed rate              5.00%      5.523% APR

FHA APR reflects 3.5% down payment and the effect of mortgage insurance on the loan.

VA Veterans Administration 0 Down Loans

With 1 point origination fee – 45 day lock

30 Year Fixed Rate           5.00%     5.178%

These are just a few of the mortgage programs and mortgage rates available. Which option is best for you depends on your own specific goals and needs. If you have any questions or want to go over your situation in depth, let me know how I can help.

Illinois Mortgage Rates                   First time home buyer loans  

We Lend in All 50 States

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