Mortgage Rates are Dropping
The Federal Reserve has met for the fifth time this year, and after this last meeting mortgage rates are dropping a bit. With rising employment rates, a growing housing market and low inflation, mortgage rates are expected to keep steady.
During the meeting the Fed covered a number of topics. They have noted that the US economy is slowly improving. Although the unemployment rate remains relatively high, it is slowly showing improvement. As employment rates improve there has also been an increase in household spending. The housing market is gaining speed, combined with low inflation, mortgage interest rates are expected to stay low.
Mortgage interest rates did not react well to last month’s statements from the Federal Open Market Committee; however July’s statements have sparked a different reaction. The Fed still intends to start tapering QE3. When QE3 was initiated mortgage rates dropped to the lowest in history, with the threat of easing QE3 rates having spiked a bit, but have since leveled out. July provided much more steady rates than May. Purchasing power is increasing and many home buyers are still in a great position. Although mortgage rates are expected to climb again, it’s still not too late to get in on historically low rates.
Check out our rates below and call us with any mortgage related questions at (708) 531-8388
Illinois Conventional Mortgage Rates
IL 30Yr conventional mortgage as of August 1, 2013 4.375%/4.883 APR
IL 15Yr conventional mortgage as of August 1, 2013 3.375%/3.497 APR
IL 5/1 ARM conventional mortgage as of August 1, 2013 3.625%/3.189 APR
IL 7/1 ARM conventional mortgage as of August 1, 2013 3.990%/3.403 APR
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