It's been a crazy couple of weeks. The dollar is plummeting. Normally, this will cause mortgage rates to jump and jump quickly.
We've had good economic news. The economy is growing, housing is exceeding expectations, and banks are beginning to sound optimistic again. That should have caused rates to jump and jump fast.
Right now, the U.S. economy is the best option among a lot of bad options for investors. Add to it a mini-AIG in Dubai last week, investment here looks great. This is helping keep Chicago mortgage rates low...for now.
When they reverse, it'll probably be a big one. Check out Chicago mortgage rates today. These are now at all-time lows.
Monday, November 30, 2009
Tuesday, November 17, 2009
PPI helps support mortgage rates rally
The Producer Price Index came in lower than expected, good news for mortgage rates.
Chicago mortgage rates have dipped almost a full .5% since jumping last month. We're in the middle of a fourth consecutive week of improved rates and we're now back to the lows of 5 weeks ago.
What's interesting about this now is that it is occurring with the new Fannie Mae and Freddie Mac refinance programs more widely available. There should be additional homeowners able to refinance compared to the rate rallies of earlier this year.
Chicago mortgage rates have dipped almost a full .5% since jumping last month. We're in the middle of a fourth consecutive week of improved rates and we're now back to the lows of 5 weeks ago.
What's interesting about this now is that it is occurring with the new Fannie Mae and Freddie Mac refinance programs more widely available. There should be additional homeowners able to refinance compared to the rate rallies of earlier this year.
Monday, November 16, 2009
Mortgage Rates Improved Last Week
Loan rates improved for the 3rd straight week last week. Rates are in a goofy spot right now and could very easily break in any of a few directions.
We have a number of things holding rates lower right now.
Consumer Spending: Consumer sentiment is awful. That could slow consumer spending heading into the holidays. That presents a major challenge for an economy that is trying to rebound.
Jobs: We're also unlikely to see any major changes to the employment figures (another contributing factor in consumer spending). With the holidays taking out so many days between now and year end, this isn't traditionally a high paced hiring season and there's no data to suggest this year will be any different.
Currency: With the US Dollar plummeting right now, foreign investment in bonds is a virtual lock.
All of these things make rates go lower. However, when rates get this low, it typically only takes one piece of news for them to jump and jump quickly.
We have a number of things holding rates lower right now.
Consumer Spending: Consumer sentiment is awful. That could slow consumer spending heading into the holidays. That presents a major challenge for an economy that is trying to rebound.
Jobs: We're also unlikely to see any major changes to the employment figures (another contributing factor in consumer spending). With the holidays taking out so many days between now and year end, this isn't traditionally a high paced hiring season and there's no data to suggest this year will be any different.
Currency: With the US Dollar plummeting right now, foreign investment in bonds is a virtual lock.
All of these things make rates go lower. However, when rates get this low, it typically only takes one piece of news for them to jump and jump quickly.
Friday, November 13, 2009
Chicago Mortgage Rates - Too Low?
Mortgage rates have followed a trend all of 2009: They near somewhere between 4.625% and 4.875% and then jump to somewhere between 5.375% and 5.625%. If that trend continues, we're close to a trend reversal.
This is the price of the bond, mortgage rates will move in the opposite direction. Bond prices have been jumping this week, pushing rates lower. If we've learned nothing else this year, it's that rates tend to take steps lower and take elevators higher.
That said, Chicago interest rates are dropping again today. A look at the mortgage-backed securities graph shows that we're getting back towards uncharted territory.
This is the price of the bond, mortgage rates will move in the opposite direction. Bond prices have been jumping this week, pushing rates lower. If we've learned nothing else this year, it's that rates tend to take steps lower and take elevators higher.
Thursday, November 12, 2009
Chicago Mortgage Rates Down .125%
Mortgage rates have improved over the last week even though the stock market also rallied during that same time period.
The average Chicago mortgage loan rates quoted are just below 5%, usually right around 4.875% today. We've been seeing this same pattern nearly all year: Loan rates fight their way down to 4.75% slowly, then quickly jump to 5.375%-5.625%. Rates are getting back to their lows from about a month ago so we might be poised for one of those quick jumps higher again.
The average Chicago mortgage loan rates quoted are just below 5%, usually right around 4.875% today. We've been seeing this same pattern nearly all year: Loan rates fight their way down to 4.75% slowly, then quickly jump to 5.375%-5.625%. Rates are getting back to their lows from about a month ago so we might be poised for one of those quick jumps higher again.
Thursday, November 5, 2009
Mortgage Rates Improving
Chicago mortgage rates are improving....somehow....someway.
The Fed's announcement yesterday was loaded with optimism as economic recovery is underway and the housing market is showing some degree of health.
The big 'but' in this story is that there are still signs of weakness in the job market, companies are not making fixed investments, and the financial markets are still reeling.
In total, the news was mixed. Nonetheless,Chicago mortgage rates are improving today after dipping .125% since yesterday.
The Fed's announcement yesterday was loaded with optimism as economic recovery is underway and the housing market is showing some degree of health.
The big 'but' in this story is that there are still signs of weakness in the job market, companies are not making fixed investments, and the financial markets are still reeling.
In total, the news was mixed. Nonetheless,Chicago mortgage rates are improving today after dipping .125% since yesterday.
Wednesday, November 4, 2009
Mortgage Applications Up
Mortgage applications were up last week by 8.2%. The Refinance Index surged 14.5% while the Purchase Index was up 1.8%.
All eyes on the Fed announcement in 8 minutes.
All eyes on the Fed announcement in 8 minutes.
Chicago Mortgage Rates Improving
In advance of the Federal Reserve statement at 1:15 CT today, mortgage rates have rebounded off lows from early this morning.
Chicago mortgage loan rates are up about .125% on most programs since yesterday. We'll definitely see volatility this afternoon, but which direction rates will go is anybody's guess.
Chicago mortgage loan rates are up about .125% on most programs since yesterday. We'll definitely see volatility this afternoon, but which direction rates will go is anybody's guess.
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