Mortgage rates fell to all time lows last week as fears of a new recession take hold. With all the problems in Europe, fear has been in the air for a while. This week the Fed amped it up a notch by saying that "there are significant downside risks to the economic outlook, including strains in global financial markets." In other words, if Europe blows up, we are going to feel the pain, too. After the release of the Fed statement, stocks plunged, the dollar strengthened and global money flowed into US treasury bonds (still the safest port in the storm), and mortgage backed securities. US stocks had their worst week since the crisis time in 2008, and mortgage rates dropped down to their lowest rates ever, before bouncing higher on Friday.

Europe is still the big concern, and while finance ministers across the continent are trying to come up with some kind of solution to keep Greece (the first domino) solvent, most analysts see this as a  doomed exercise. They may come up with another band aid to hold back the bleeding, maybe even a tourniquet that will keep it in check longer, But in the end it comes down to how much the stronger countries like Germany are willing to do to prop up the weaker, and though they are all in this together, they are close to the limits. Any news from Europe, whether good or bad, will be sure to spark the markets. The US economy is tied tightly through trade with Europe, and a slow down there will be felt here, too. As added concern, our biggest banks have exposure to European debt and are tangled up with derivatives (such as those that caused so much trouble in the credit collapse in 2008) so any defaults will be magnified.

The fed is doing it’s best to try to stimulate the economy again, but they can no longer do it by adding money to their balance sheet (printing money). Their newest trick is Operation Twist, a re-do of something they first tried back in the early 60s. The plan is for the Treasury to replace some of its longer-term debt with shorter-term obligations, and the Federal Reserve would simultaneously sell some of its shorter-term securities and buy longer-term Treasuries. The idea is that by buying longer term debt, this will lower the cost of credit and spur borrowing, especially mortgage refinancing. The initial reaction is that this policy worked like a charm, and rates are now in a whole new range.

Rates popped higher on Friday (we had 2 rate changes for the worse) but we are still at all time lows. Volatility is at an all time high, and the rate quoted in the morning may not be available in the afternoon. Still, when markets move they don’t move in straight lines. There are ups and downs, and it is impossible to know where the bottom is. Expect volatility. If you are able to refinance, this is the time to get your documentation together and check out your options. If you are in the market to buy a new home, the cost of ownership just went down. If I can help in any way, please give me a call.

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, best FHA rates assume a 640 Fico score, but loans are available with credit scores as low as 580. Mortgage rates in other states may be slightly different, give me a call and I will give you an accurate quote for your particular situation. 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, including credit scores, property type, amount of down payment and a number of other factors. 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 will take the time to find the rate and program that is best for you:

Conventional loans up to $417,000

For Jumbo loans over $417,000

*(Another option is to break your Jumbo loan into 2 parts a conventional to the limit of $417,000 and a HELOC or fixed second mortgage for the rest. The blended rate is usually much better than a single loan would be.)

** 5-5 ARM is fixed for first 5 years, with 2/6 caps it can’t go more than 2% above the start rate for the next 5 years. 2% cap for next 5 years – so a blended rate over 10 years is no more than 1% over the start rate. Super Jumbos available.

FHA LOANS 3.5% down payment FHA Maximum varies by County

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

FHA 203K Rehab Loans – Call for Current Quote – FHA 203k Rehab and Renovation loans are now available as 30 year fixed or 5-1 ARMs.

VA Veterans Administration 0 Down Loans

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.

Free Home Buyers Guide

You can trust in us to get the job done.

Peter Thompson 630-479-6424

Illinois Mortgage Rates                   First time home buyer loans

Chicago Mortgage Company            Chicago FHA Mortgages

Greece and the health of the European Union is still the focus of financial concern, but so far the time bomb is still ticking. Over the last week the stock market improved and mortgage rates ticked slightly higher as optimism that some kind of solution would take hold. There was talk that China was going to come in as a big buyer of Italian debt, but that turned out to be premature. The Fed along with European central banks came up with a plan to add liquidity to the market, but this was a way to keep dollars flowing not a long term structural solution. By the end of the week the situation was almost the same as where it was at the start. Greece is still on the brink and Europe is still the focus.

The economic data released this week was mostly on the weak side. Retail sales came in flat, unemployment claims for the week were slightly higher and inflation ticked higher, though still in the range of Fed expectations. More people are worried about the economy slipping into a new recession, and with the costs of food and fuel taking a bigger bite out of their paychecks every week, they have less to spend. The Fed meets this week for a 2 day meeting, and while some in the Fed are pushing for more stimulus, there is enough dissention that it is doubtful anything big will be released.

Mortgage rates ticked higher for most of the week, but we are still in the same all time low range. If you are in the market for a mortgage, whether buying a new home or refinancing your current home, this is a good time to save money.

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, best FHA rates assume a 640 Fico score, but loans are available with credit scores as low as 580. Mortgage rates in other states may be slightly different, give me a call and I will give you an accurate quote for your particular situation. 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, including credit scores, property type, amount of down payment and a number of other factors. 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 will take the time to find the rate and program that is best for you:

Conventional loans up to $417,000

For Jumbo loans over $417,000

*(Another option is to break your Jumbo loan into 2 parts a conventional to the limit of $417,000 and a HELOC or fixed second mortgage for the rest. The blended rate is usually much better than a single loan would be.)

** 5-5 ARM is fixed for first 5 years, with 2/6 caps it can’t go more than 2% above the start rate for the next 5 years. 2% cap for next 5 years – so a blended rate over 10 years is no more than 1% over the start rate. Super Jumbos available.

FHA LOANS 3.5% down payment FHA Maximum varies by County

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

FHA 203K Rehab Loans – Call for Current Quote – FHA 203k Rehab and Renovation loans are now available as 30 year fixed or 5-1 ARMs.

VA Veterans Administration 0 Down Loans

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.

Free Home Buyers Guide

You can trust in us to get the job done.

Peter Thompson 630-479-6424

Illinois Mortgage Rates                   First time home buyer loans

Chicago Mortgage Company            Chicago FHA Mortgages

Rates are at all time lows, and it is all about what is happening in Europe. For the past months the news has been that Greece is teetering again, and if Greece falls the other dominos (Spain, Portugal, Ireland and then others) will follow, triggering a collapse of the European Union. Greece has wobbled on the ledge for a while, but it looks like it has now reached the tipping point. A meeting of top European financial ministers broke up this weekend with no clear direction. The big question has been whether the stronger countries – scratch that – if Germany will do what it needs to bail out Greece and keep the union intact. So far they have said they will, but doubts have crept in. France, the second strongest economy in Europe, is now facing a credit down grade of their own and it looks more and more like Germany will have to do all the heavy lifting on their own. This isn’t a popular stance internally, and a hard sell for politicians to support. After the meeting this weekend, the markets are now expecting Greece to default.

Despite all of our economic problems here, the European weakness has shown our comparative strength. As money rushes out of Euros, the dollar has gained ground and US treasury bonds have strengthened, and the yield (which is the opposite of the price) is at an all time low. Mortgage rates are based on mortgage backed securities (MBS) not treasury bonds, but MBS follow the direction and are also at all time lows. Last week there were some signs that the economy was doing better than expected (a relatively strong ISM report and the Fed beige book both showed the economy was expanding). The President also gave a speech calling for nearly half a billion in new spending and tax cuts (stimulus) to jump start the jobs market. This would normally cause the markets to sway with fears of inflation, but the focus is all on Europe now.

Mortgage rates are at all time lows, but they may not go much lower. Volatility is crazy in the MBS markets, and this means higher hedging costs for the lenders. Even when the markets are improving, the lenders need to protect themselves and make sure that they are able to deliver the rate when the mortgage is funded, so rates don’t improve to the same degree. The other factor is that every time rates get close to their best point historically, there is resistance and a likelihood that rates will pull back. We are in uncharted waters now, but most experts think that rates will not go much lower. If you are looking to buy a new home, or thinking about refinancing, this is the time to take advantage of the opportunity.

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, best FHA rates assume a 640 Fico score, but loans are available with credit scores as low as 580. Mortgage rates in other states may be slightly different, give me a call and I will give you an accurate quote for your particular situation. 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, including credit scores, property type, amount of down payment and a number of other factors. 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 will take the time to find the rate and program that is best for you:

Conventional loans up to $417,000

For Jumbo loans over $417,000

*(Another option is to break your Jumbo loan into 2 parts a conventional to the limit of $417,000 and a HELOC or fixed second mortgage for the rest. The blended rate is usually much better than a single loan would be.)

** 5-5 ARM is fixed for first 5 years, with 2/6 caps it can’t go more than 2% above the start rate for the next 5 years. 2% cap for next 5 years – so a blended rate over 10 years is no more than 1% over the start rate. Super Jumbos available.

FHA LOANS 3.5% down payment FHA Maximum varies by County

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

FHA 203K Rehab Loans – Call for Current Quote – FHA 203k Rehab and Renovation loans are now available as 30 year fixed or 5-1 ARMs.

VA Veterans Administration 0 Down Loans

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.

Free Home Buyers Guide

You can trust in us to get the job done.

Peter Thompson 630-479-6424

Illinois Mortgage Rates                   First time home buyer loans

Chicago Mortgage Company            Chicago FHA Mortgages