Chicago Illinois Current Mortgage rates for Today 11/22/2010
22nd January 2010
As we end the week, mortgage bonds end slightly off for the day (hitting technical 
resistance levels), but much improved on the week. Heading into the weekend we are seeing the best mortgage rates of the last month. So the $64,000 question is, will this last? Will mortgage rates continue to improve, or is this just a nice positive bump in the midst of an upward move? All the smart money is saying that mortgage rates will rise this year, probably soon. The big mover is the fact that the FED will be ending their mortgage backed securities purchase program ($1.25 Trillion worth) at the end of the first quarter. But some people are saying they will find a way to back door the buying (maybe through Government entities Fannie Mae and Freddie Mac) and continue to keep rates low. If this is going to happen, we should be getting some kind of sign soon. In the mean time the rate movement is really a function of the weakness in the stock market. Today was the 3rd down day in a row. Stocks have surged in the last year and a pullback in prices isn’t unreasonable. But the trend is still holding so far, so we could see stocks regain their Mojo on Monday, and if that happens mortgage rates are likely to move higher, again. If you are in a position to lock, this could be a good time to do so.
Here are the current Chicago Illinois Home mortgage rates for an A+ (740 Fico or above), full doc single family home purchase or rate/term refinance on a 45 day rate lock, with 0 points, and no origination fee. Mortgage rates in other states may be slightly different, give me a call and I will give you an accurate quote for your particular situation. The conventional and FHA rates are based on the highest conforming loan amounts, which give the best pricing. Again, there are many factors which affect mortgage rates and your ability to be approved for a loan. These rates may not fit your situation and this is just a sample of the programs that are out there. If you would like a quote for your personal situation, or to get pre-approved for a mortgage, give me a call or contact me (Illinois mortgage company) and I’ll take the time to find the rate and program that is best for you:
Conventional loans up to $417,000
| 30 year fixed rate | 5.00% | 5.167% APR |
| 15 Year fixed Rate | 4.375% | 4.549% APR |
| 5-1 A.R.M. | 4.125% | 4.289% APR |
For Jumbo loans over $417,000
| 30 Year Fixed Rate* | 5.875% | 6.066%* APR |
| 7-1 A.R.M. | 4.875% | 5.095% APR |
(Another option is to break your Jumbo loan into 2 parts – conventional to the limit of $417,000 and a HELOC or fixed second mortgage for the rest. The blended rate is usually much better than a single loan would be.)
FHA LOANS – 3.5% down payment – FHA Maximum varies by County
| FHA 30 year fixed | 4.875% with 1 Pt | 5.227% APR |
| FHA 30 year fixed | 5.00% with 0 Pts | 5.278% APR |
| FHA 5-1 ARM | 4.375% with 1Pt | 4.866% APR |
| FHA 5-1 ARM | 4.625% with 0 Pts | 4.872% APR |
FHA APR reflects 3.5% down payment and the effect of mortgage insurance on the loan. Call for information on no-cost FHA streamlined Refinances
FHA 203K Rehab Loans
Call for Quote
VA Veterans Administration 0 Down Loans
| VA 30 Year Fixed Rate | 5.00% with 1Pt Origination | 5.499% APR |
| VA 30 Year Fixed Rate | 5.25% with 0 Pts | 5.471% APR |
Call for information on no-cost VA Streamlined Refinances
These are just a few of the mortgage programs and mortgage rates available. Which option is best for you depends on your own specific goals and needs. If you have any questions or want to go over your situation in depth, let me know how I can help.
Peter Thompson 630-479-6424
Illinois Mortgage Rates First time home buyer loans
Chicago Mortgage Company
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Posted in Economics and Trends, Illinois Mortgage Rate Weekly Update, Opinions and Prognostications | 2 Comments »
based on where it is likely to earn the highest return. Today the stock market is off, so money flows into the relative safety of bonds. Mortgage bonds are benefitting, so the trend in mortgage interest rates is improving. The improvement in mortgage bonds doesn’t immediately translate into lower rates, but again, the trend is favorable. Part of the reason that stocks are taking a hit today is because President Obama has announced that they will start a new regulatory push against the big banks. Regulatory reform has been on the back burner all year, and with the bankers taking big bonuses after taking on massive bailouts to keep them afloat after they wrecked the economy, this is sure to be a popular position on Main Street. But there is a big difference between talking tough and acting tough. We will see what happens and how long before anything changes. If this gets pushed further into the future, stocks will recover, but for now the trend is going in the right direction for Chicago mortgage rates.
trading within a range, buying more when the cost is cheap and selling when the securities move toward the best part of the range? My vote is for the last one. There are some signs of improvement in the economy – retail sales for November were much higher than expected, and consumer confidence was higher, too. But that has been the trend for the last several months, some good news mixed with the bad, and the mood shifting on an almost day to day basis. As I’ve written before, the economy is like a Rorschach test, and you see in it what you want to see. If the rates start recovering this week there will be data to back up the improvement, but it is more a case of which data is highlighted based on the direction the market is heading.
a loss of only 11,000 jobs in the month of November, the best showing in 2 years. This was much better than the expected loss of 150,000 jobs, and light years away from the hundreds of thousands of jobs lost we’ve seen for most of the last year (over 900,000 at this time last year). It is still a loss, and the economy needs to gain about 150,000 jobs each month just to keep up with population growth, but if this number turns out to be real (there are always revisions the next month), this is more than less bad news, it would be authentic good news that the economy is recovering quicker than expected. Other good news is that if you acted fast, you could have locked in your refinance rate at the lowest rates in modern history. On the other hand, good news for the economy is bad news for mortgage rates. The refi boom from the low, low rates peaked after just a couple of days, and following the release of the employment report, mortgage rates surged back to their highs for the last 4 months (though rates are still low).
moving information. Consumer confidence ticked slightly higher, home starts increased slightly and the Case Schiller Index showed that the housing market is coming back, but still a long ways down from where it was a year ago. The Fed Open Market Committee released their minutes from last month’s meeting, and it amplified what they said earlier in their news release. The upshot is that in order for the economy to continue to recover, they need to keep rates low for an extended period of time. In the minutes they acknowledged that low rates could continue to hurt the dollar on world markets, and there is a risk of inflation, but these risks are low and the economy is still fragile. So expect that short term interest rates will stay where they are for at least a good part of next year. The mortgage bond markets liked this news, and the markets rallied on Wednesday sending mortgage rates a notch lower.
it is still up near the highs for the year. Oil and gold have had major run ups, and the dollar keeps getting smacked around on the currency market. The government holds new auctions for debt nearly every week and the money supply continues to grow. The economy is still soft, but we are long past the panic and slowly moving forward. At the same time, the Fed is nearing the end of its commitment to buy mortgage backed securities to keep rates low (the Fed has purchased over $1 trillion out of $1.25 trillion promised). All these are usually signs that inflation is heating up, and that mortgage rates should be rising. But rates stayed flat this week, near the lows of the year. What gives?
With Thanksgiving on Thursday, this is a short week for the markets. Most of the activity will be on Monday and Tuesday before traders leave early on Wednesday for the extra long week. Existing home sales, the GDP, and consumer confidence measures will all be released this week, as well as several new auctions of government debt. With the shortened week expect more volatility in mortgage rates. Let me know if I can help you with refinancing your current mortgage, or helping you with your loan when you buy a new home. The 
as the Fed slowed down on their buying schedule of mortgage backed securities. Stock prices are still hovering at the top of their range, and oil prices have gone up, a sign that inflation fears are in the air. None of this seems to matter. Mortgage bonds usually do best when bad news abounds and fear is in the air, right now all the signals are mixed. Housing is still a mess and unemployment is likely to continue to be bad through all of next year. But there are other signs that business is returning to a more normal pattern. So the question comes down to, are these low rates the start of a bigger move down, or the last gasp before rates start to rise?
and expanded 
This is good news for home buyers, and though I don’t see this making a big difference this year (home buying always goes down in December), it should make for a strong, and fast start for the market next year. The move up buyer credit will help some, but this is more a case of an added bonus than something that will really get homeowners to sell their homes and buy a new one. Too many homeowners have lost equity in their homes and aren’t able to take advantage of the offer, even though they may have outgrown their current home. Also, the first time home buyers in the market are usually looking for bargains, and they are concentrating on the foreclosures and short sales that are priced the lowest. If these homeowners can’t sell their homes, they won’t be able to move up to a new one. But for those who have equity and can, this is one more reason to take advantage of the low mortgage rates and low home prices available now. If you are looking to buy a new home, the first step is a 
The GDP, the measure of all the goods and services sold in the economy, grew by 3.5% in the third quarter of 2009. This news brought out the expected end of the recession talk, and the stock market surged on the news. But almost all of the increase was due to the cash for clunkers program and other government stimulus. The other reports released this week showed that the economy was still not quite in boom mode. The good news is that inflation is still not a problem. Personal income was flat and spending was down for September. Consumer confidence was down again, dimming the prospects for increases in consumer spending down the road. The /Case-Schiller Home Price Indices show that prices are still down, but the rate of decline improved compared to last month’s reading. This index has improved each month over the last 7 months. In Chicago home prices were up 2.7% over last month, but still over 12% down from where they were last year. By the end of the week, the stock market was falling and money flowing into the safer bonds. This means better mortgage rates for the week.
wisdom was that the first time home buyers tax credit was likely to expire as concerns of the cost of the credit and the amount of fraud overshadowed the benefits. What a difference a week makes. This week the Senate took up the extension of the first time home buyers tax credit, and though it hasn’t passed yet, the word is that it will be extended and made available to move up buyers, too. So it is likely that the tax credit will be extended and expanded, helping the real estate market and letting more home buyers qualify through the beginning of next year. I’ll post more once the final bill goes through.