Sue Fox, @Properties. Direct 773.816.1788

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Mortgages going fast… and low

filed under: Market conditions, Mortgage Rates posted on September 10th, 2009

Time to buy? Rates dipped again last week.

Time to buy? Rates dipped again last week.

Mortgage rates have been sweet this summer, and the demand is rising.

Loan applications soared 17% last week, with low interest rates driving demand for both new purchases and refinances, according to the Mortgage Bankers Association’s weekly survey.

Some of this demand, in my opinion, is also coming from first-time buyers trying to close in time to snag the government’s $8,000 tax credit. It expires at the end of November, so there’s a bit of a rush right now for lenders.

Here’s a look at current mortgage rates in Chicago, courtesy of Wintrust Mortgage:

30 Year Fixed
Rate Discount Points APR
4.875% 0.96% 5.019%
5.000% 0.50% 5.106%
5.125% 0.00% 5.183%
5/1 ARM
Rate Discount Points APR
3.625% 1.30% 3.782%
3.750% 0.50% 3.844%
3.875% 0.08% 3.935%
FHA 30 Year Fixed
Rate Discount Points APR
4.750% 2.02% 5.720%
4.875% 1.46% 5.796%
5.000% 0.58% 5.843%

If you’re already a homeowner who is paying a higher rate, it may be time to refinance. Keep in mind that many lenders expect you to have 20% equity in your home, so if you just bought it last year with 5% down you’re probably out of luck.

According to the Mortgage Bankers Association, refi applications rose 22.5% last week, the largest increase since March. The demand for purchase loans went up 9.5% from the prior week.

Written by Sue Fox //

  1. Loan Advice

    Very very interesting post..I like this one. gotta bookmark this one.
    Loan Advice

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