Chicago Illinois Mortgage Rates Weekly Update
Welcome to Illinois Mortgage Rates and News week in review for the week ending November 27th, 2009, my take on the week’s financial news and how it affected Chicago Illinois mortgage rates.
Rates slid a little farther last week, and we are now at the lowest rates of the year. This was a holiday shortened week, but it was jam packed with market 
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.
The biggest news of the week may have come at the end of the week, when Dubai World, the Dubai government backed investment company, announced that they were trying to reschedule their debt. This news hit over sea markets hard, and the stock market here got jarred too. The 59 billion dollar debt isn’t too big in global terms, and the big banks that took on the loans have enough problems, but this is just one more, not a fatal blow. This does seem to be more evidence that there are still pockets of the bubble economy that haven’t popped yet. In hind site, Dubai was always an accident waiting to happen. This was a super luxury resort/tax haven, in one of the most inhospitable spots in the world. Like Las Vegas, but without the gambling or in most cases drinking, it was built on decadence. Some of the bubbleicious features included an indoor ski resort (in the middle of the desert) and man mad islands shaped like palm trees and the world. We’ll see if this default was a one time event, or if this continues to pull markets down.
We will know more about the results of Black Friday and the start of the Christmas shopping season later, but the initial results show an increase in the amount spent over all, but less spent per shopper. It looks like the shoppers are just looking for the bargains, and not buying the extra things that the retailers need to keep profits up. As we enter December, real estate usually goes into hibernation mode, but there are signs that this year may be different. The New Home Buyer Tax Credit extension is motivating more people to start looking, and these low, low interest rates are likely to keep the market hopping. If you are looking for mortgage pre-approval anywhere in the country, give me a call and we can get the process started. If you are thinking of refinancing your mortgage, there may not be a better time to get 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. 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 4.75% 4.867% 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. 625% 5.129% APR
With no origination fee – 45 day lock
30 year fixed rate 4.875% 5.136% 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 4.75% 4.987%
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.
Here are the reports due to be released this week:
Monday, November 30
• Chicago PMI
Tuesday, December 1
• Construction spending
• ISM Index
• Pending home sales
• Auto and truck sales
Wednesday, December 2
• ADP employment report
• Fed Beige Book
Thursday, December 3
• Jobless claims
• Productivity
• ISM Services
Friday, December 4
• Nonfarm payrolls
• Factory orders
Illinois Mortgage Rates First time home buyer loans
Downers Grove Mortgage Company
We Lend in All 50 States