June 2012

Chicago Illinois Mortgage Rates Week in Review for the Week Ending 06/15/2012

Disaster in Europe is averted, at least for the next several days, as the pro-bailout New Democracy party won the Greek elections yesterday. The fear has been that if one of the opposition party’s against the bailout won, or if no party had the strength to form a coalition, Greece would withdraw from the Euro zone, and the whole continents economy would crash. This is good news for now, but still just kicking the can a little further down the road. The New Democrats are likely to be able to form a coalition government, and they are committed to taking the bailout funds and staying with the Euro. The problem lies in the details. How will they implement this new austerity, and how will they come up with the money to make their interest payments on their current debt? The answer to the second part is more borrowing, since they…

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Chicago Area Home Buyers – Current News

Chicago Home Buyers Taking the “Wait-and-See” Approach Many people living in the Chicagoland area are still hesitant about buying a home. In a report released Thursday (June 7) by  Fannie Mae, 41 percent of consumers polled believe house mortgages will rise in the next year. Also, 34 percent of consumers expect home prices to increase, and almost half of consumers expect rent to increase. Only 15 percent of consumers believe it’s a good time to sell a home. Home prices and mortgage rates are at a record low, but consumers are still wary to buy. Chicago Foreclosures Provide Both Benefits and Risks While you could be getting a great deal buying a foreclosed home in Chicago, you could also be purchasing a house full of detrimental issues that could end up costing you thousands of dollars to repair.  Some foreclosures are selling at nearly half the price of what they…

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Chicago Illinois Mortgage Rates Week in Review for the Week Ending 06/08/2012

This promises to be a hot summer. Weather here in Chicago is always hot in the summer time, but with all the turmoil in Europe, the financial markets are feeling the heat, too. Last week the focus was mostly on the situation in Spain. With Spain’s major banks on the brink of failure and bond rates soaring, they became the fourth European Union member to ask for a bailout (Greece, Portugal and Ireland are the others). The general guidelines of the bailout have been worked out, which takes the pressure off for now, but nothing will be official until later this month. And Spain is still a side show, as the real risk is what happens to Greece after their next round of elections on June 17th – next Sunday. They weren’t able to form a government the last time they tried, and this time the favored party is running…

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Chicago Area FHA Mortgages – Links for the Week

FHA Streamline Refinance – New Program Will Help Some Chicago Area Home Owners Save Money After June 11, the FHA will reduce mortgage fees for qualified borrowers under their Streamline Refinance Program.  The new FHA program will allow borrowers who currently have a Chicago FHA mortgage to refinance with today’s record low rates.  However, this program only applies to those borrowers who took on the mortgage before June 1st 2009. FHA May Relax Some Rules for Condos Soon The FHA may soon change requirements on financing purchases of condominium units. No specifics yet, but plenty of speculation. One possible change could come on the condo association rule, which has troubled the Chicago market.  The Community Associations Institute believes the FHA will modify its standard on assessment delinquencies to allow flexibility for associations. FHA Foreclosure Starts Rise 73% in April Overall foreclosure starts fell 2.6 percent in April, with FHA foreclosure…

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Chicago Illinois Mortgage Rates Week in Review for the Week Ending 06/01/2012

Mortgage rates dropped to NEW all time lows last week, as fear is now in the air in the financial markets. We have been worrying about Europe for some time, and what the consequences will be if Greece drops out of the European Union. Last week we got the one-two punch as domestic reports showed that our economy, which has been chugging along steadily if unspectacularly, is now at risk of stalling, too. Nearly all the reports released last week had a gloomy edge – GDP growth was revised downward for the first quarter, the ISM manufacturing index came in lower than expected, auto sales were off for the month, unemployment claims came in higher than expected for the week and Case Schiller showed home coming in at the lowest point since the slide began (on the good side, home affordability is back to where it was in the early…

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