December 2012

Chicago Illinois Mortgage Rates Week in Review for the Week Ending 12/29/2012

Happy New Year! Buckle up, it looks like we are going cliff diving. The two parties in Washington are holding hands, Thelma and Louise style, and punching down on the accelerator as they go over, saying goodbye to 2012. Do you ever wonder how much better our economy would be if it wasn’t held back by a completely dysfunctional government? This latest crisis is almost exactly mirroring what happened a year and a half back when the congress and president couldn’t come to an agreement on raising the debt ceiling on time, and as a result Standard and Poors lowered the US credit rating. The good news then was that the investing world ignored the rating drop, US bonds are still considered the safest in the world and rates have dropped sharply since then. The good news now is that even though we are almost surely going over, this is…

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Chicago Illinois Mortgage Rates Week in Review for the Week Ending 07/14/2012

In the mortgage industry, the big news last week was the Fed announcement that they will be extending their quantitative easing program and placing economic benchmarks to replace their previous time table. With the announcement, the Fed committed to an additional $45 billion dollars of treasury and mortgage bond purchases each month. The goal of this program is to drive rates lower so that there is a bigger incentive to invest money since the yield is so low. The bigger change was that the dates the program was in effect for have been removed and replaced with specific performance benchmarks. The program will continue until unemployment drops to 6.5%, or on the flip side, inflation moves up to 2.5%. This is the firs time the Fed has given specific guidance to unemployment rates, and they are saying that they are willing to put up with a little extra risk of…

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Chicago Illinois Mortgage Rates Week in Review for the Week Ending 11/30/2012

If you have watched the financial news over the last few weeks, you probably get a tinge of anxiety every time you hear the phrase “Fiscal Cliff”. The markets for Treasuries and mortgage bonds moved back and forth over the last week based on each rumor and news clip relating to who had the cards and what was going to be done politically to forge a solution in time. The phrase does sound ominous, and with grid lock built into the system in Washington, the odds of the Republicans and Democrats coming together on a compromise solution before the beginning of the year seems slim, so what will happen if we do go over this cliff? In reality probably not that much, at least at first. The biggest thing that will happen automatically, is that tax rates will rise for everyone after January 1st as the Bush tax cut hits…

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