January 2010

Chicago Illinois Current Mortgage Rates for Today, 01/29/2010

All the reports released today showed signs of an improving economy – GDP (gross domestic Product) showed an increase of 5.7% for the 4th quarter, a full point better than expectations., Chicago PMI and the consumer confidence index also came in stronger than expected. Improvement in the economy (Good News) means a possibility of inflation down the road, so this is usually cause for the mortgage bond market to sell off and for mortgage rates to rise. But today the opposite occurred. Mortgage rates took in all the good news and improved (marginally ) in spite of it. Go figure. The real reason mortgage rates are better is because first, we are still in the same range, and traders are picking their buy and sell points based on points in this range, which means we will head back the other way sometime next week. The second reason for the improvement…

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Chicago Illinois Current Mortgage rates for Today, 01/28/2010

Unemployment claims came in slightly higher than expected this morning with initial  claims of 470,000 for the week. Durable Goods numbers were worse than expected, too. These reports both indicate that the economy is still bumping along and a recovery is still hidden behind some future bend. The State of The Union speech last night emphasized job creation, which everyone agrees is our nation’s biggest problem. The stock market approves. Fed Chairman Ben Bernanke’s confirmation is up for a vote today, and though not all are in his camp, he is expected to get in for his second term. Add all this in and bonds are fluctuating, but mortgage rates are basically flat. Here are the current Chicago 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…

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Chicago Illinois Mortgage Rates for Today, 01/27/2010 – Special Fed Meeting Edition

The Fed has spoken, and rates are trending higher. At least for today. As always, the Fed parses their language, and in order to decipher their intent you need to read between the lines to see what they are thinking of the future, and how their actions will impact rates down the line. the take away from this announcement is that the economy is picking up and we are in far better shape then we were at this time last year. But any improvement will be moderate because of high unemployment, a weak housing market and tight credit. This means inflation is not on the horizon and the Fed is more concerned with maintaining conditions for a growing economy. The Fed will keep rates at or near zero, for an extended period of time. This language should be friendly toward mortgage rates, but they also reaffirmed that they were ending…

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FHA Condo Financing in Chicago – With the FHA Spot Loan Going Away, How Do You Finance an FHA Condo Purchase? Part 1

The law of unintended consequences kicks in again this week, and this means a big change for the condo market here in Chicago and around the country. The FHA spot loan expires as of February 2nd, so this is the last week that spot loans will be accepted. HUD (the Department of Housing and Urban Development) which administers FHA, is now switching entirely to a new condominium approval process. While this looked like great news when it was first announced several months back, the reality is that this is turning into a major headache for lenders, and condo buyers. For now, there will be fewer condo properties that are eligible for FHA financing, making it harder for buyers without a large down payment to get the best financing. Over the last few years, as conventional guidelines and extra mortgage insurance regulations made condo financing tougher, the FHA spot loan became…

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Chicago Illinois Current Mortgage Rates for Today 01/26/2010

President Obama is about to announce that the Government is going on a diet, of sorts. The new plan  will freeze non-security related Government spending (with some exceptions) and is supposed to mean a savings of $250 billion in savings over the next 10  years. There has been so much fear in the financial markets based on the increased Federal debt, so this is probably a good political move. But saving with one hand while spending with the other is likely to continue for some time. The mortgage rates market has benefitted over the last year as the Fed aggressively bought mortgage backed securities. They have now spent 92% of the amount allotted for purchase, and the program is near the end. In normal markets (remember those?) mortgage rates would shoot higher as we near the expected close date. That hasn’t happened yet, and part of the reason may be…

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Chicago Illinois Current Mortgage rates for Today 11/22/2010

As we end the week, mortgage bonds end slightly off for the day (hitting technical resistance levels), but much improved on the week. Heading into the weekend we are seeing the best mortgage rates of the last month. So the $64,000 question is, will this last? Will mortgage rates continue to improve, or is this just a nice positive bump in the midst of an upward move? All the smart money is saying that mortgage rates will rise this year, probably soon. The big mover is the fact that the FED will be ending their mortgage backed securities purchase program ($1.25 Trillion worth) at the end of the first quarter. But some people are saying they will find a way to back door the buying (maybe through Government entities Fannie Mae and Freddie Mac) and continue to keep rates low. If this is going to happen, we should be getting…

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Chicago Illinois Current Mortgage Rates for Today 01/21/2010

Stocks are down and mortgage rates improving. Money flows from one area to another, based on where it is likely to earn the highest return. Today the stock market is off, so money flows into the relative safety of bonds. Mortgage bonds are benefitting, so the trend in mortgage interest rates is improving. The improvement in mortgage bonds doesn’t immediately translate into lower rates, but again, the trend is favorable.  Part of the reason that stocks are taking a hit today is because President Obama has announced that they will start a new regulatory push against the big banks. Regulatory reform has been on the back burner all year, and with the bankers taking big bonuses after taking on massive bailouts to keep them afloat after they wrecked the economy, this is sure to be a popular position on Main Street. But there is a big difference between talking tough…

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Chicago Illinois Current Mortgage Rates for Today 01/20/2010

Stocks were off and mortgages are trending in the right direction again. FHA announced some big changes today which will help prop up their reserve fund, but will make it costlier to buy. One more reason why first time home buyers should buy now, rather than waiting until later in the year. Stocks recovered as the day went on. We’ll see tomorrow if this was just a blip, or if declining stocks is a trend. If stocks keep falling mortgage rates could drop lower. Either way, there is no question that these are great rates today. Here are the current Chicago 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. Mortgage rates in other states may be slightly different, give me a call and I will…

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FHA Increasing Premiums, Reducing Seller Concessions – One More reason For First Time Home Buyers to Buy Now

  FHA is making changes to insure their long term survival and increase their reserve fund, and these changes mean it will be more expensive for home buyers. FHA has  been talking about these changes over the last several months, but now it is official. The biggest change is an increase in the Up-Front mortgage insurance FHA charges on every loan. FHA doesn’t make loans, they act as a mortgage insurance fund insuring lenders against loan losses through the mortgage insurance charged on each loan. FHA handles this in two ways, a small (compared to conventional mortgages) monthly charge, and a large chuck up front, which is usually financed into the loan. The up-front MIP (mortgage insurance premium) is currently 1.75%, but with this announcement it will soon increase to 2.25%. The way this works, if a first time home buyer or other buyer buys a home at $100,000 with…

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Chicago Illinois Current Mortgage Rates for Today, 01/19/2010

There isn’t a lot of economic data coming out today, so the mortgage bond market is treading water, off a little, but not enough to make a difference. Home builder sentiment came in low, but it has been down about dirt level for well over a year, so that isn’t making a big impact. The consensus is that rates are going to go up at some point, but we just don’t know when that will be. If you are in a position to lock into a rate (you have a contract and know when you are supposed to close), this is probably a good time to lock. We could get better in the short term, but the risk is heavier than the reward. Here are the current Chicago Illinois Home mortgage rates for an A+ (740 Fico or above), full doc single family home purchase or rate/term refinance on a…

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