Are you currently in the process of buying a home or refinancing in Chicago or vicinity? 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
  • 7-15 Days: I recommend Cautious FLOATING
  • 15 + Days: I recommend FLOATING

This is a unique week as turmoil has continued across the Middle East.  Libya specifically has broken out into the most violent and brutal of the countries experiencing unrest and the current regime has voiced that they have no intentions of backing down.  Backed by loyal militia and mercenaries, they have moved to crush opposition.  This has savaged the equities markets and driven oil prices up significantly.  As a result, bonds are once again in vogue and mortgage rates have responded favorably.  Ratewatchers stay tuned as this is the opportunity for which you have been waiting.

The week ahead for economic data that can affect mortgage interest rates:

Monday

  • December Consumer Credit

Tuesday

  • Case/Shiller Home Price Index
  • Consumer Confidence
  • $35 Billion 2-year Treasury Auction

Wednesday

  • MBA Weekly Mortgage Applications
  • Existing Home Sales
  • $35 Billion 5-year Treasury Auction

Thursday

  • Weekly Jobless Claims
  • Durable Goods Orders
  • FHFA Housing Price Index
  • New Home Sales
  • $29 Billion 7-year Treasury Auction

Friday

  • Quarterly GDP
  • University of Michigan Consumer Sentiment