October 2011

Chicago Illinois Mortgage Rates Week in Review for the Week Ending 10/28/2011

Happy Halloween! These is plenty of news to be scared of. After months of turmoil, the European Union has now come to an agreement on how to get their house in order. Greek bonds will be written down by 50% and the Union will raise over 1 Trillion Euros of new debt to recapitalize the economy. Now comes the hard part, implementing the deal and making it work. This agreement takes the worst fears off the table for now, but many analysts don’t think this is the end of the crisis, but more of a pause in the action. The amount authorized may not be enough to cover the problem, and even if it is, we still don’t know how they will raise the money (will China come to the rescue?). There is still a big disconnect between the have and the have not nations, and every time something needs…

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Obama Refinance plan Part 2 – New HARP Plan Will Help Underwater Home Owners Refinance their Mortgages

Earlier this week, President Obama announced a new plan to rework the HARP program designed to help more homeowners take advantage of low mortgage rates. The HARP program covers loans that were taken over by Fannie Mae (DU Refi Plus) and Freddie Mac (open Access). When the program was first rolled out, the idea was to allow homebuyers to refinance even if their homes had lost considerable value. The program was originally set to allow home owners to refinance based on their original mortgage terms, so if you had put 20% down when you first bought the home, the new loan would be treated as the same and you wouldn’t need to buy mortgage insurance, even if the value was much less now. Originally the program was set to that help even borrowers who were underwater, that is they owed more on their home than the property was worth, and…

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Chicago Illinois Mortgage Rates Week in Review for the Week Ending 10/-7/2011

If you listened to news reports last week, you would have heard that mortgage rates just dropped down to their lowest point ever (according to the survey 3.94% with .80 points). Unfortunately, the news reports are based on the Freddie Mac loan survey, and this survey is always a week behind. In the real world, mortgage rates rose sharply higher and ended the week at the highest point in over a month. Mortgage rates are still near all time lows, and chances are good that rates will drop lower again soon, but the volatility now is nothing short of awe inspiring. Mortgage rates are market driven, and mortgage backed securities move up and down based on traders expectations of the strength in the economy and the risk of inflation. Last week the optimists were out in force as the outlook in Europe improved, and economic data came in better than…

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