October 2012

Chicago Illinois Mortgage Rates Week in Review for the Week Ending 10/19/2012

Since the Fed initiated their latest round of quantitative easing, the mortgage market has been holding steady at record low interest rates, but last week the calm waters turned choppy. Mortgage rates rose sharply for the first four days, before a stock market sell-off on Friday sparked a bond market rally which contained the damage. Mortgage rates are still near record lows, but the very lowest rates are gone, at least for now. The Fed Open Market Committee is meeting again this week, and their comments will be watched closely for any clue of direction. Barring any big surprises, expect the mortgage backed securities markets (which determines mortgage rates) to be tied closely to what happens in the stock market. The direction of the markets has been linked closely to what is happening globally, especially in Europe in China. Right now the focus might be coming back home for a…

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Chicago Illinois Mortgage Rates Week in Review for the Week Ending 10/12/2012

Mortgage rates have been remarkably stable, even as the economy continues to show signs of improvement. This week the University of Michigan consumer confidence survey rose more than expected to a reading of 83.1, a five year high. The producer price index, a measure of inflation at the production level, dropped from 1.7 last month to 1.1%. First time jobless claims feel for the week, coming in at their lowest point since 2008. All these things are signs that the economy is gradually improving, and under normal circumstances would be reasons for the bond markets to sell off and for mortgage rates to rise. That’s not happening this time. There are two things that are keeping rates low in spite of all the good news.  First, the rest of the world is still on the edge. The Chinese economy is rapidly slowing down, and Europe continues to teeter on the…

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