Todays Mortgage Rates Are Incredibly Good, at 4.75% for Well Qualified Buyers

September 30, 2009

Daily Mortgage Updates

A&N Mortgage Logo30 September 2009 ? The monthly ADP Report, which gives us a look at the private sector job market showed private employers cut 254,000 jobs in September, worse than the 200,000 which was expected. This release, as I have mentioned in the past, does not always match up with the Labor Department?s official Jobs Report, but this news doesn?t fair well for this Friday?s important Job?s number. Right now economists are estimating a loss of 180,000 jobs for the month of September. To discuss the Job?s number here is a brief summary of what we are up against. The population is growing, so the number of people looking for jobs is increasing. There are 150 million people in the workforce, and that number grows by about 1% per year (1.5 million), just due to the population growth. To just keep pace with that, the US needs to create about 125,000 jobs per month. A loss of 200,000 jobs is actually a loss of 325,000 for just one month because we are falling behind on the job creation that is necessary. The unemployment rate is really much higher than what is reported and will continue to weigh down the economic recovery. Stocks should stay in check due to the jobs issue which will keep bonds in check and mortgage rates should remain stable for the time being. This will stay true until inflation becomes a concern which would represent a hard time as high unemployment and inflation together would create a challenging environment.

For now, everyone should review their mortgage and debt position to see if they can lower their payment. If they can lower their payment they may want to opt to put the money that they can save towards the principal balance of their loan essentially cutting off between 3 and 15 years of their mortgage.

Rates are incredibly good right now, 4.75% (4.83 apr) on the 30 year, 4.375% (4.423 apr) on the 15 year.

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About Chris DePaepe

Chris is a lifelong Chicagoan who was born and raised on the Northwest side. She has a business degree from Rosary College in River Forest and a MBA in finance from DePaul University. She has been in the mortgage industry since July of 1996 and understands the importance of educating clients about the process of purchasing or refinancing a home. Chris?s education and customer service separates her from her competition, from taking an application at 11 p.m. to doing a closing in the convenience of your home, customer service is her #1 priority! With her extensive financial education she is able to pass along critical information to potential clients about mortgage interest and the differences between a 30, 25, 20 and 15 year loan. Chris will run every amortization chart and spend a great deal of time explaining the savings on your mortgage interest by showing actual examples. Also, most first time buyers do not understand the tax advantage of owning a home and she will break that down and show the actual tax advantage of owning a home versus renting. Chris prides herself on taking the time to fully educate every buyer so they are aware of the process from the beginning to the end without any surprises. Whether you are looking to refinance or purchase a home, understanding today?s market is extremely important to getting your loan approved. You can contact Chris 24/7 at chrisd@aandnmortgage.com, 773-305-7016, or 773-848-4144.

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