November 2011

Chicago Illinois Mortgage Rates Week in Review for the Week Ending 11/25/2011

This is beginning to sound like a broken record, but in a short Holiday week the attention is still focused on the situation in Europe. Belgium, one of the stronger economies in the European Union, had its credit rating cut last week, and an auction of German debt, considered nearly as safe as US debt, went badly on Friday. The consensus is that that a default from Greece or Italy is likely, and there is still nothing in place to hold the union together if this happens. The latest date to watch is December 9th, the next scheduled meeting of the European Debt Summit. In the mean time, the markets are still optimistic that a solution will come through. Rumors of a big bailout for Italy were quickly shot down, but hope is still in the air that something will take hold before disaster sets in. If anything happens in…

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Chicago Illinois Mortgage Rates Week in Review for the Week Ending 11/18/2011

This promises to be an interesting week coming up, as volatility is increasing, and traders here in the US will have a short week due to Thanksgiving. You won’t be surprised to hear that Europe is still the focus of the markets. First it was Europe, then Spain and Italy took the spotlight, now it may be France’s turn, which is a much bigger problem. French bond yields are exploding and Moodys debt rating service may down grade their debt this week. Whatever happens there will surely be felt over here, and this is still the prime mover of mortgage rates. Mortgage bonds last week were all over the board, but ended the week just slightly off from where they began. Mortgage rates are about the same. from last week. If you take Europe out of the mix, the economy here in the United States is actually improving. Initial unemployment…

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Chicago Illinois Mortgage Rates Week in Review for the Week Ending 11/12/2011

News from Europe continues to drive the market. Greece is old news and Italy has bought some time now that Prime Minister Berlusconi has resigned. But Spanish bond yields are now hitting new highs which means that Spain may be the next point of concern. As one crisis is defused another inevitably pops up. This has been described as the Whack a Mole crisis, based on the arcade game where as you hit one mole with a hammer and another pops up on another part of the board. Just because the spotlight has moved away from Italy and Greece this doesn’t meant that their economies are back on track and their problems are cured. It means that they have taken action to diffuse the immediate problem, while the underlying issues still remain. The big problem is that the European Union is broken into the economies that produced more than they…

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Chicago Illinois Mortgage Rates Week in Review for the Week Ending 11/04/2011

That didn’t last long. Last week the consensus out of Europe was that a deal was in place where Greece would accept a new round of austerity, and the rest of Europe would pony up the cash to keep them solvent. This didn’t look like a long term solution, no one really knew where the money was going to come from. But the solution turned out to be much shorter than anyone expected, about one day, when Greece’s Prime Minister threw a curve by calling for a national referendum on the bail out plan. Greece is still trying to figure out how it can best get through this crisis, the problem is that Greece is just the first domino. If the first domino remains standing, they all stay up. If it starts to fall, look out, there is a whole line of countries set up and waiting. The focus now…

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