Welcome to Illinois Mortgage Rates and News week in review for the week ending July 3rd, 2009, my take on the week’s financial news and how it affected Illinois mortgage rates.

The news released this week continues the trend back toward lower rates, but gave more proof that the economy is bottoming out and the worst of the slide is over. There weren’t a lot of fireworks in the market since so many traders were taking the week off. On the good side, May factory orders ticked up 1.2% and the ISM index, a survey of purchasing managers throughout the country, showed an increase, suggesting more companies are running low on inventories and reordering. The Case Schiller index gave more evidence that housing is forming a bottom. Home prices are still going down, but at a much slower pace than before. On the downside, consumer confidence took a tumble again, falling another five points to 49.3. This is important because if consumers don’t feel confident they won’t spend money and it will be hard for the economy to recover.

The biggest market mover this week, as is usually the case, was the release of the unemployment report. This is always the most anticipated report of the month and this was no exception. Last month the numbers were much better than expected, and if they came in the same range this month it would be confirmation that the economy was rebounding. Didn’t happen. The report came in at 467,000 jobs lost in June, 100,000 worse than expected, and the worst rate in 26 years. This is better than the 600+ range we were seeing earlier in the year, but it is along way from stabilizing let alone recovery. This news sent the stock markets lower, and helped bond rates move lower. Because this was a Holiday shortened week where volume was low, mortgage rates didn’t benefit as much as they otherwise might have. But odds are good that we will see some improvement in pricing next week.

The purchase market is still alive and well as a result of low prices, still affordable mortgage rates and the $8,000 first time home buyer’s tax credit. The tax credit is a big incentive to buy now, and it only applies for those purchases that close before December 1^st of this year. If you are in the market for a home and fit the criteria for the credit, make sure you allow enough time to buy and close before the expiration date. The clock is ticking. Here are the current Illinois Home mortgage rates 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              5.25%     5.397% APR

15 Year fixed Rate             4.75%      4.848% APR

5-1 A.R.M.                         4.50%        4.672% APR

For Jumbo loans over $417,000

30 Year Fixed Rate*          6.75%       6.897%

7-1 A.R.M.                        5.375%       5.453% 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              5.25%      5.879% APR

With no origination fee – 45 day lock

30 year fixed rate              5.50%      5.863% APR

FHA APR reflects 3.5% down payment and the effect of mortgage insurance on the loan. Call for information on no-cost FHA streamlined Refinances

VA Veterans Administration 0 Down Loans

With 1 point origination fee – 45 day lock

30 Year Fixed Rate            5.00%      5.248%  

Call for information on no-cost VA Streamlined Refinances

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.

Happy 4th of July!

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