30-Year Fixed Rate at New Low

The interest rate on a 30-year fixed mortgage has reached the lowest level since September 2005. This according to Feddie Mac as economic conditions worsen resulting from the dreaded credit crunch. These new lows are prompting more homeowners to refinance and likely to stimulate buyers entering the real estate market this year.

Read more about mortgage rates at MarketWatch.

Mortgage Rates Drop Sharply

News out of Washington via the AP wire: Interest rates on 30-year mortgages dropped this week to the lowest point in four months. This could very well provide some relief for people hoping to refinance their existing mortgages and for those purchasing new or existing homes.

Freddie Mac, the mortgage company, reported Thursday that 30-year, fixed-rate mortgages averaged 6.31 percent this week, the lowest level since May 17, when 30-year mortgages averaged 6.21 percent. The rate had been 6.46 percent last week. Read more >>

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Buyers Market Update

Are you looking to buy? If so, you are most likely shopping interest rates and home loan products in your local market. Maybe you’ve noticed that interest rates have fallen below 6% in some markets and that, my friends could signal a solid buyers market. By the same token, this economic climate may motivate some homeowners to sell their current home and upgrade to a new one.

For your convenience, I’ve added Bank Rate charts to this blog on the right sidebar. That will give you a glimpse at mortgage rates from a top resource. You should know that rates posted by services such as Bank Rate are geared toward consumers with high credit scores and low debt. However, you certainly can use these numbers as a benchmark. Check with your local lender for the best loan products available for your individual situation and location.

Mortgage Rates Keeping a Low Profile

A low profile as in low rates, that is. Experts say that the economy is slowing and that should keep mortgage rates down. Economic indicators are a good measure to gage these numbers. I recommend keeping an eye on the current state of the economy and there related mortgage rate benchmarks. If for example, the economy can avoid slipping into a recession this year, mortgage rates could actually rise slightly over that period of time.

We'll keep a watch on it for you here at Chicagoland Homes. For a quick reference, head on over to the sidebar of this blog for current mortgage headlines and rates.