January 2013

Chicago Illinois Mortgage Rates Week in Review for the Week Ending 01/25/2013

Mortgage rates blipped sharply higher last week after a trifecta of optimism hit the market. One of the biggest reasons interest rates are so low, is because of fear that the European Union is, and has been, on the verge of collapse. To stave off the collapse the ECB, Europe’s version of the Fed, lent out cheap money to banks throughout the continent to maintain liquidity in the system. Last week they announced that more than half the banks participating in the program will be paying off the loans as soon as they are contractually able to (this week). That is much better than expected, and a sign that the overall economy is in much better shape than has been projected.Rates dropped into their lowest range when the markets expected that the European Union was about to collapse, so this good news is indeed bad news for the lower trend…

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Chicago Illinois Mortgage Rates Week in Review for the Week Ending 01/11/2013

For a good part of last year, the financial markets moved up and down based on whatever was happening in Europe. The problems there aren’t fixed, but this has moved firmly to the backburner as all the attention now is focused on our own political issues. We have been muddling along and the US economy has been slowly but steadily improving, and unemployment has slowly but steadily been dropping. The biggest crises we have now seem to be of our own making. We came into the New Year courting disaster, and ground the brakes down to dust as we stopped just short of the fiscal cliff. The agreement didn’t really end anything though, it just forced a break in the action so the two political parties could re-group for the next battle. For our next crisis, we are bumping up against the debt ceiling again and this will have to…

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