September 2011

Chicago Illinois Mortgage Rates Week in Review for the Week Ending 09/23/2011

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…

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Chicago Illinois Mortgage Rates Week in Review for the Week ending 09/16/2011

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…

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Chicago Illinois Mortgage Rates Week in Review for the Week Ending 09/09/2011

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…

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