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Welcome to Illinois Mortgage Rates and News week in review for the week ending November 13th, 2009, my take on the week’s financial news and how it affected Chicago Illinois mortgage rates.

The big news this week is that rates are back in the 4s. This wasn’t supposed to happen. All the experts have expected that mortgage rates would start to rise 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?

Mortgage rates were in this low range earlier in the year up to the beginning of the Summer when mortgage rates surged higher. Since then we have been back in this range periodically, but it’s usually for a short and fleeting time before the rates pop higher. I wouldn’t be surprised if this happens again this time. Usually the best rates don’t last long. At the same time, I expect rates to stay affordable long term. The market is starting to realize that the economy isn’t going to bounce back to where it was and that the Fed is committed to keeping short term rates low for an extended period of time. And even though oil and commodity prices are still high, the conventional wisdom is starting to see that inflation isn’t an immediate threat. In order for housing to recover, mortgage rates have to stay low. So I don’t expect rates to go up any time soon (though eventually they will have to) but the low, low rates like we have now are not likely to last. If you are looking to refinance your mortgage or lock in the rate for your purchase loan, this might be a good time to do it.

We are hitting the time of year when the housing market usually slows down. Traditionally, Thanksgiving is the time when home buyers pull back and hibernate for the winter. It looks like this year will be different. The New Home Buyer Tax Credit extension is already getting new buyers off the sidelines, and though business always slows down for the Holidays, all signs point to a fast start after the first of the year. If you are looking to buy a new home, the first step is a Chicago mortgage pre-approval, give me a call and we can get the process started.

Here are the current 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. 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              4.875%         5.078% APR

15 Year fixed Rate             4.25%         4.367% APR

5-1 A.R.M.                         3.75%        3.867% APR

For Jumbo loans over $417,000

***************** SPECIAL JUMBO PRICING ****************

30 Year Fixed Rate*          5.875%        6.093%*

This 30 year fixed Jumbo is special pricing based on a purchase up to 75% LTV or a refinance to 70%, 680 or better Fico scores. Other restrictions may apply.

**************************************************************

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

With 1 point origination fee – 45 day lock

30 year fixed rate              4.875%       5.369% APR

With no origination fee – 45 day lock

30 year fixed rate              5.25%      5.464% 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

Call for quotes on FHA 203K Rehab Loans

VA Veterans Administration 0 Down Loans

With 1 point origination fee – 45 day lock

30 Year Fixed Rate            5.25%       5.437%

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.

Illinois Mortgage Rates                   First time home buyer loans

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