Falling Illinois mortgage rates
For the first time in weeks, mortgage rates in Illinois and throughout the rest of the country have fallen. Interest rates for a 30 year fixed mortgage fell as much as a half of a percentage point last week. Rates for FHA and VA mortgage loans have fallen as well. Since the Fed met in early May, interest rates had been steadily rising. Ben Bernanke, president of the Fed, had made comments that they will start to ease their funding for the federal stimulus program. After the program was started, the U.S. saw the lowest mortgage rates in history.
The housing market welcomed the fall in rates last week; when interest rates rise it decreases home affordability by approximately 10% for every percentage point. While the policies the Fed has in place does influence mortgage interest rates, it does not control them. However, the policies set in place by the Fed are clearly not the only influence they have over mortgage rates, what they say is also a large determining factor. Ben Bernanke’s comments may have prematurely set rates into an upward spiral, and now many members of Federal Reserve Banks from around the country say that Wall Street is over-reacting.
Although mortgage rates have gone up in the last month they are still historically cheap. It is still not too late for many people to refinance their current mortgage loans, and it is a great time for people to purchase a new home or an investment property. United Home Loans can help you determine what the best choices for you are when looking for a home loan. Contact us today to lock in a low interest rate while you still can.
United Home Loans provides mortgage loans in Wisconsin, Minnesota, Michigan, Indiana and Illinois. Check out our rates below and call us with any mortgage related questions at (708) 531-8388.
Illinois Mortgage Rates
IL 30 Year Fixed mortgage as of July 02, 2013 4.250%/4.291 APR
IL 15 Year Fixed mortgage as of July 02, 2013 3.375%/3.445 APR
IL 5/1 ARM Fixed mortgage as of July 02, 2013 3.625%/3.031 APR
IL 7/1 ARM Fixed mortgage as of July 02, 2013 3.750%3.202 APR
Please click this link
for APR assumptions and more IL mortgage rates