November 2012

Chicago Illinois Mortgage Rates Week in Review for the Week Ending 11/16/2012

The mortgage backed securities markets went up and down like a yoyo this week, but in the end, despite all the movement, mortgage rates are stable and at about the same level as the week before. The election is over which brings some stability to the markets, but there are still a lot of unknowns, which means uncertainty is still the major vibe. The US economy has been improving, but the reports moving forward are going to be skewed for a while as the impact from Hurricane Sandy is felt. All the devastation will mean a drop in jobs, production and economic activity at first, and then a spike as the cleanup and rehab takes over. The focus now moves to concern over how we will make it past the fiscal cliff, and what will become of the rest of the world. The fiscal cliff is scary, and our government…

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Chicago Illinois Mortgage Rates Week in Review for the Week Ending November 9, 2012

We can all breathe I sigh of relief now that the election is finally over. Whether your man won or lost, the good news is that we won’t have non-stop political ads for a while yet anyways, and with the uncertainty of the election settled, the markets can move on to other worries. For what it is worth, the short term result of the election is that stocks have gotten weaker, but bonds, including mortgage bonds, have gotten stronger. This means that interest rates are now back to their lowest range. But worry is one of the things that markets do best, and now the big concern is whether we will drive over the fiscal cliff, the expiration of the Bush tax cuts combined with the results of the sequester, which mandates big budget cuts if Congress can’t agree on a plan to reduce the deficit. Though Obama won reelection…

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