Are you currently in the process of buying a Lincoln Park home or refinancing your Chicago mortgage? Trying to decide when to lock can be a stressful and difficult decision. In my job as a mortgage lender, I watch the markets daily to keep my clients abreast of changes to assist them in securing the best mortgage rate possible. Please see my recommendations below.
If closing your Chicago mortgage in:
- 5-7 Days: I recommend LOCKING
- 7 or more days: I would suggest FLOATING with extreme caution. With this much volatility, I would LOCK on any improvements as well as any major upward repricing.
The week that was:
This week could have been disastrous for ratewatchers as there was a lot of economic data, some T-Bill auctions and a bunch of corporate earnings reports. In addition, this was the week of President Obama’s State of the Union address and the release of the FOMC policy. While we did see and uptick in mortgage pricing after the government’s input, it could have been much worse. Although received favorably, President Obama’s remarks did not signal any great revelations and the continued stress on “investment” in the economy sent a signal of greater debt. As far as the FOMC was concerned, there was a definitive signal that there could be continuance of the quantitative easing strategy as well as a belief on their part that the economy is generally improving. Coupled with some positive earnings reports, this news was enough to send the Dow over 12,000. Subsequently, the price of Fannie Mae and Freddie Mac conforming loans saw an increase.
All of this changed Friday as unrest in Egypt sent investors running. The ensuing flight to quality reversed the trend in mortgage pricing for the better. Although many lenders have not repriced the trend is that this will likely occur. I would recommend that everyone with loans in process closely monitor the market and keep in close touch with their bankers to ensure they take best advantage of the situation.
30 YEAR FIXED
National Average Rate: 4.80%
15 YEAR FIXED
National Average Rate: 4.09%
Source: Freddie Mac