Chicago's Mortgage Choice - February 27, 2019 - Jumbo Loan Programs

Hello, With the spring purchase market upon us, we have the Jumbo Loan Product to fit your needs! Jumbo loans for purchase or rate and term refinance as high as 95% LTV! Jumbo Loans up to 1mm at 95%! Currently 4.25% (4.30 APR) 10/1 ARM 484,351-1,000,000=95% (740) 484,351-650,000 = 95% (700) 651,000-850,000 = 90% (700) 851,000-999,999 = 80% (700) **1 unit property-owner occupied-5/1, 7/1, and 10/1 ARM’s only, MI required** Keith Stewart kstewart@cfsmortgage.com 708-925-2562

Chicago's Mortgage Choice - February 27, 2019 - New Location

Hello Business Partners, Clients, and Friends: I am happy to announce that I have accepted a position with Chicago Financial Services. All of my new contact information is below. CFS is a correspondent lender (banker) as opposed to a mortgage broker. This means we underwrite in-house and fund our own loans. This allows for a much more streamlined loan process as well as increased flexibility and product options. We are licensed in IL, IN, WI, MI, FL, AZ, CA, and WA. Here are just a few of the programs we have available. •Conventional Loans - min. 3% down payment. Fannie Mae Home Ready and Freddie Home Possible available. (IHDA, City of Chicago, And Cook County Down Payment programs available.) •FHA & VA – FICO as low as 580. 3.5% down payment for FHA - ZERO down payment for VA. •Jumbo Loans – min FICO 680. As low as 10% down payment. Loans up to 2.5 million •Asset Depletion – have a 401k, IRA, annuity, etc.? We may be able to use as income. •Moving and still own your current home? Have a signed lease & security deposit? We may be able to use the rental income. •Physician Loans, HELOC's, Cash Out Refinance, Co-op, FHA 203k, Non-QM available. Call or email for details. Please don’t hesitate to contact me if I can be of assistance. Also, if you know of anyone in need of a mortgage loan for refinance or purchase, I appreciate your passing my name along. Most of my business come from previous clients and referrals. Keith Stewart kstewart@cfsmortgage.com 708-925-2562

Chicago's Mortgage Choice - July 10, 2018 Real Estate Report - The Jobs Picture -- More Questions

With the release of the June employment report we have now seen six months of data for 2018. This gives us a pretty good indication of how the economy is doing this year. The economy has added approximately 1.25 million jobs in the first six months of the year. And though the last two months are still subject to revisions, it is not expected that the average number of jobs added over six months will change that much. How does this number differ from the number of jobs added in 2016 and 2017? We added 2.1 million jobs in 2016 and 2.2 million jobs in 2017. That comes out to approximately 170,000 jobs per month. Thus, the number of jobs added has increased moderately this year. That leads us to two questions. Can we assume that the tax plan as implemented is creating additional jobs? We think that six months is too short of a time period to come to that conclusion, but it certainly is a possibility. Secondly, why did the unemployment rate increase last month? One possible answer is that the labor participation rate may be returning to normal. In the past month 600,000 workers joined the workforce and the labor participation rate ticked up to 62.9%, though it is still below where it was a decade ago. We may never move to the level of participation we saw before the recession because, as the baby boomers have aged, many have retired. Neither of these questions have been answered fully, but we are seeing some good evidence in last month's jobs report. Perhaps the answers will come into focus during the second half of the year. Keith Stewart 773-529-7000

Chicago's Mortgage Choice - June 26, 2018 Real Estate Report - The Fed's Strong Message

We now have had some time to decipher the Federal Reserve Board's statement after their meeting last week. The tone of the message can be described as hawkish. The Fed used words that were a bit stronger with regard to the economy and the future of interest rates. For example, economic growth was described as solid, rather than moderate as in their previous missives. This growth is being supported by a pick-up in household spending and a decline in unemployment. Though they are still using the term "gradual increases" to describe their rate hikes, the statement pointed to the members' opinion that two more rate increases were in the cards for this year. In other words, the pace of gradual increases seems to be accelerating. The Fed no longer is worried that inflation is below their 2.0% target rate because inflation is now close to their short-term target and the focus appears to be shifting on the side of keeping inflation from moving higher from here. While the markets seem to find the path ahead inevitable, we must remind our readers that there is always the possibility of intervening events which could cause the Fed to change their course. In the past we have seen natural disasters, political upheaval, strikes, terrorist incidents and more. We can't foresee any of these and everyone hopes they don't happen. However, we need to understand that predictions are just that. No one can ordain the future. And that is what makes the markets and life interesting. Keith Stewart - 773-529-7000

Chicago's Mortgage Choice - June 19, 2018 Real Estate Report - The Fed's Announcement

As expected, the Federal Reserve Board's Open Market Committee met last week and announced that they would be raising short-term rates by 0.25%. Since the move was anticipated, there was no major reaction by the markets, excepting for the usual increase in rates in anticipation of the decision and subsequently a little easing as the meeting grew closer. This was the seventh time the Fed had raised rates by 0.25% in the past three years during their period of rate "normalization" from the historic lows of the recession and slow recovery. The big concern for the markets was the statement which accompanied the announcement. As usual, the markets were looking for an assessment of the economy, as well as hints of the pace of future rate increases this year. It seems that the members of the committee are ready to continue increasing rates as much as two more times this year. Some were searching for a hint that rates are coming close to what the Fed considers a normalized level, but that was nowhere to be found. As we have discussed previously, it is an open question where that level is located. When the Fed defines that level, then we will have a better idea of where rates will eventually settle if the economy does not falter. There was one more important meeting last week. This was the summit with North Korea. Though it was not expected that any breakthroughs were to come from this meeting, it was expected that a positive process would begin. Certainly, the statements made after the meeting were quite hopeful and the meeting itself was a breakthrough. Between international trade and other tensions in the spotlight this year, there has been a lot of caution in the markets contributing to the volatility we have seen. Any easing of tensions could be helpful in this regard. Keith Stewart 773-529-7000

Chicago's Mortgage Choice - May 29, 2018 Real Estate Report - Rates: The New Normal?

Interest rates have been rising this year. This is not surprising considering the fact that the economy continues to expand, we have added a tax cut into the equation and the Federal Reserve has been raising interest rates for the past two years. Most analysts are predicting rates to continue to increase. On the other hand, rates rose during the winter of 2016-2017, and rose in 2015 as well. Analysts predicted that those increases would also lead to further higher rates. What makes this time different? For one, the extra stimulus of tax reform, but also the fact that the economic recovery is more mature. We have gradually reached full employment and commodity prices, such as oil, are rising. Thus, while we can't say rates will go up from here, it would be reasonable to at least ponder the next significant question -- how high could rates go from here if they continue to rise? After all, in the past we have experienced rates on home loans over six percent for decades at a time. On the other hand, rates have been so low for such a long time, that we might experience the possibility of a new normal. While very low rates may not be needed now to stimulate the economy, the interest rates supporting a normal economy might be lower than we have experienced before. Recently, San Francisco Fed President/NY Fed President Nominee John Williams called this a potential "new normal." With today's higher housing prices, having a new "lower" normal for interest rates would be a very welcome development. If rates continue to rise, this assumes that this "new level" will be substantively less than what we have experienced historically. Keith Stewart 773-529-7000

Chicago's Mortgage Choice - May 15, 2018 Real Estate Trends - Another Milestone

The economic recovery recently hit an important milestone. It is now officially the second longest expansion in our history. For much of the expansion, the recovery has felt more painful than others. For one, the Great Recession was extremely deep and painful. Therefore, most Americans needed a long-term for their personal recovery from the recession. Secondly, the recovery was quite slow. Sometimes it was so slow it did not seem like a recovery at all. On the other hand, the slow pace of the recovery brought some major advantages to the equation. Interest rates were able to remain low for a longer period of time. We had a sale on money that has lasted most of the previous decade. Additionally, the long life of the recovery can be attributed to the fact that the economy has not overheated during the recovery. Overheated economies bring inflation and rapidly rising interest rates which can turn the economy south in a hurry. Even as rates have risen in the past two years, it has been a slow and gradual process. As a matter of fact, long-term rates have taken their time to react to the Federal Reserve Board's short-term rate hikes. Of course, the next question is--how long will the recovery keep going? We know it can't last forever. Our hope is that when the recovery does pause, it does so in a very mild way, in contrast to the last recession. For now, the old guy is just trudging along. Keith Stewart 773-529-7000

Chicago's Mortgage Choice - May 1, 2018 Real Estate Report - Economic Sweeps Week

The jobs report is the most intensely watched of all monthly economic releases. As far as events are concerned, meetings of the Federal Reserve's Federal Open Market Committee (FOMC) stand as one of the most important events as well. To have them both happen in the same week is somewhat of an anomaly. This week, we will get the pleasure of experiencing both happenings, and it will certainly portend to be an interesting week for market-watchers. The first question is -- will the Fed hike interest rates again at their meeting? We have had increases in December and March, which means that a hike at this meeting is not a certainty. Most observers expect another two to three increases this year and if the Fed holds off this month, a schedule of two additional increases may be slightly more likely. Either way, market watchers will be analyzing the Fed statement for clues regarding the likelihood of future increases. One thing is for sure, the Fed will be watching Friday's jobs report closely, especially after the initial estimate of economic growth in the first quarter came in a tad higher than expectations last week. While employment growth has been very steady overall, there has been volatility from month-to-month. February's numbers were much higher than expected and March's numbers were lower than forecast. Thus, the markets and the Fed will be observing whether this month breaks in one direction or the other -- or perhaps the numbers level out. As always, the Fed will also be paying close attention to the numbers reported on wage growth, an important indicator of the potential for inflation. Keith Stewart 773-529-7000

April 24, 2018 Real Estate Report - The Impact of Trade Battles

There seems to be a lot of rhetoric going back and forth on the topic of trade wars. Much of this debate centers upon the question of whether we are in a trade war or not. We can't answer that question definitively, but certainly we do understand that some of the basic characteristics of a trade war have been implemented and others have been threatened. We have imposed tariffs on other countries' goods and they have done the same to our goods. The important question is not whether this is a full-blown trade war, but what is the impact of the implementation of tariffs? In the short run, we have seen one major impact -- the stock market has become very volatile. As we have previously discussed, this volatility is caused by more than one factor. However, the risk of trade wars certainly is playing a significant part in contributing to volatility. Why are the markets uneasy regarding these tariffs? For one, tariffs raise prices to our consumers. On the other side of the equation, when other countries retaliate against our goods, it hurts the producers of these goods -- from manufacturers to farmers. These two factors can actually balance each other out. For example, higher prices contribute to inflation which can bring higher interest rates. On the other hand, lowering exports can hurt certain sectors of the economy and that might bring rates down. Which side of the equation might win out? It is hard to tell. We actually hope that these "shots being fired" are precursors to the negotiation of better trade agreements that will benefit all parties. In the meantime, there will be some negative impacts and certainly a lot of noise. Keith Stewart 773-529-7000

Chicago's Mortgage Choice - March 20, 2018 Real Estate Report - The Fed Meets Today

The Federal Reserve Board's Open Market Committee meets today and tomorrow. While the vast majority of the world will be going about their business, thousands of financial analysts will be on the edge of their seats trying to determine what the Fed's direction will be. Like all Americans, they are concerned that the Fed will raise short-term rates. However, this action would not be unexpected, and thus it is not the top concern of these analysts. They are more concerned about what the Fed will say about the future. The markets have already built-in two to four rate increases this year into their thinking. But there is a big difference between two increases and four. Market rates have already moved up in anticipation of these rate hikes. Any talk of accelerating inflation from the Fed and the markets could become amped up further. If the Fed indicates that they remain on a slow and steady path of rate increases, we might see the markets calm down a bit. For the most part, the economic news leading up to the meeting does not seem to indicate an overheating economy -- except for last month's jobs report. Existing home sales are constrained due to tight inventories, personal spending increases have been moderate and so has manufacturing growth. A slow and steady expansion actually could be the best news for all concerned, as we would see continued job gains without rates moving up to a point in which the economy starts to be adversely affected. Keith Stewart 773-529-7000

March 13, 2018 Real Estate Report - The Jobs Machine Hums

The wild year has continued with regard to volatility in the markets, political headlines and, sadly, national tragedies. Through it all, we have seen three patterns emerge. First, the volatility has been focused mostly in the stock and bond markets. Stock gains were some of the strongest in memory in January and the losses in February came close to wiping out those gains. The bond market has been weak, and this has led to higher long-term interest rates. Secondly, we have seen an economy which has continued to strengthen, but not overheat. There is no longer talk of the lack of inflation being a threat to growth. But, on the other hand, inflation has not been a major issue either. Lastly, up until now, jobs growth has been rather steady. Other than a hiccup late last year due to the devastating storms we had during the hurricane season, our jobs growth has been holding at a strong enough level to keep unemployment low. February's job report saw this trend grow stronger with 313,000 jobs added. The unemployment rate remained at 4.1%. With regard to wages, the story there showed no acceleration of wage growth. Overall this report was viewed as good news. For those waiting and wondering what the Federal Reserve Board's Open Market Committee will do with interest rates next week when they meet, the consensus is that this report will not change the odds much that the Fed will increase rates. Nothing is a certainty, but if you listened to the Congressional testimony of the new Chairman, Jerome Powell, a rate hike this month is definitely a strong possibility. Keith Stewart 773-529-7000

February 20, 2018 Real Estate Trends - The Wild Ride

We are dedicated to helping Americans achieve and maintain the American Dream of Homeownership. Our commitment is to provide the highest quality service while working to help our clients achieve their financial objectives within the real estate process. We are proud of our work that has made us the area's company of choice for so many working towards their long-term goals. February 20, 2018 The Wild Ride Several weeks ago, we spoke about the negative effects of economic growth. The two factors we cited were higher interest rates and higher oil prices. Now we are starting to see the markets react to this new reality. Many are blaming rising interest rates for causing what we can now call a stock market correction. A correction which we have not seen for some time. Why would higher rates cause stocks to falter? Abnormally low rates have propped up the markets for years. Why keep your money in the bank earning 1.0% interest when you can earn 10% or more in the stock market? That is an over-simplification, but certainly higher rates are taking some of this extra stimulus out of the equation. Not that rising rates are the only explanation with regard to the trepidation in stocks. As we also explained several weeks ago, the tax plan was great news for stocks because it immediately made companies more profitable by lowering their tax rates significantly. Stocks have been rallying for nine years, comprising the second longest bull market in history, but the rally intensified in anticipation of the tax plan. We surmised that all the good tax news was already built into stocks, but the rally continued anyway -- until rates started rising. The question now is whether this is just a healthy and long-overdue correction which may reverse quickly, or is it the beginning of the end for the bull run? As always, we will stay away from predictions. Rates could ease back down or stabilize -- and the market could climb back. Right now, the economy is healthy and rates have not risen far enough to cause the economy to pause. Actually, if the growth eased a bit, this could cause the Federal Reserve Board to be less concerned with inflationary pressures and perhaps permit them to take their foot off the pedal. For now, we have a pretty wild ride going on. A government shut-down has been averted and the compromise has produced good news for real estate. The two-year, $400 billion spending deal came as a result of a bipartisan group of lawmakers supporting the agreement. Congress now has until March 23 to write the legislation to accompany the spending deal that will fund the government for the rest of the fiscal year. The National Association of REALTORS® fought and achieved a number of wins for real estate, including a temporary extension of federal flood insurance and extension of NAR-backed tax provisions. Here are the details: • Flood insurance. The National Flood Insurance Program has been extended until March 23, giving lawmakers time to work out an extension that could last until September 30. The deal also adds $27 billion in mitigation and resiliency funds to address issues arising from last year’s hurricanes, and it makes $12 billion available under the Community Development Block Grant program to fund U.S. Army Corp of Engineers flood mitigation projects. • Extension of tax provisions. The deal retroactively extends provisions for the 2017 tax year for mortgage debt forgiveness; mortgage insurance premiums and energy efficiency improvements in commercial buildings. • Tax Credit. The nonbusiness energy property tax credit applies to ten percent of the amount paid for qualified energy efficiency improvements such as energy-saving roofs, windows, skylights, and doors, and 100 percent of that paid for qualified energy products, such as high-efficiency water heaters, air conditioning units, and furnaces. Source: REALTOR® Magazine Existing-home sales in 2017 surged to the best year for sales in 11 years, the National Association of Realtors® reported. Total existing-home sales—which include completed transactions for single-family homes, townhomes, condos, and co-ops—rose 1.1 percent in 2017 to a 5.51 million sales pace. The sales pace surpassed 2016’s 5.45 million, which had been the highest pace since 2006. End-of-the-year sales numbers were overcast somewhat by a slower sales pace in December. Existing-home sales decreased 3.6 percent in December month over month to a seasonally adjusted annual rate of 5.57 million. “Existing sales concluded the year on a softer note, but they were guided higher these last 12 months by a multi-streak of exceptional job growth, which ignited buyer demand,” says Lawrence Yun, NAR’s chief economist. “At the same time, market conditions were far from perfect. New listings struggled to keep up with what was sold very quickly, and buying became less affordable in a large swath of the country. These two factors ultimately muted what should have been a stronger sales pace.” The median existing-home price for all housing types in December was $246,800, which is 5.8 percent higher than a year ago. First-time home purchasers comprised 32 percent of sales in December, up from 29 percent in November. Source: NAR Keith Stewart 773-529-7000

February 13, 2018 Real Estate Report - Rate Predictions and Perspective

It is amazing how it seems every year we have predictions that interest rates will go up. And each year interest rates do go up. And then, they go back down. The yield of the 10-year Treasuries have gone up over 0.5% over the past few months. But they also went up just about the same amount during the winter of 2016-17. Similar rises were witnessed in 2015 and 2014, though the patterns were slightly different. Each time, rates came back down. If we look at this pattern, we can conclude that rates are likely to come back down again, right? Not so fast. There is one intervening variable that occurred this year, as opposed to previous years. That variable is the tax legislation. Tax reform is designed to stimulate economic growth. In previous years, rates came back down because our economic growth never became too strong to ignite inflation. Nor did rates move high enough to scare the stock market into a correction, as has happened in the past week -- not that stocks were not due for a correction after so many years of increases. Some say that the Federal Reserve Board raising short-term interest rates makes higher long-term rates a certainty. But, we must remember, the Fed raised rates in 2015 and 2016, albeit not as quickly as 2017. In 2015 and 2016, the Fed was "normalizing" rates because the economy had stabilized. Now the economy is growing, and we have added a major stimulus. Rates are not rising because the Fed is raising rates, rates are rising because the markets and the Fed expect further economic growth. That being said, it is still impossible to predict the future of economic growth or rates. On the other hand, if you feel this is the last opportunity to take advantage of historically low rates, you may want to act accordingly. Keith Stewart 773-529-7000

Chicago's Mortgage Choice - January 30, 2018 Real Estate Report - Double Feature

As we have mentioned previously, it has already been a busy year with major storms, wildfires that turned into mudslides, a new tax plan and the in-fighting in Washington seemingly getting worse. And that is just the first month of the year. We end the first month and start the second month with another busy week, at least on the economic front. This week we have the first meeting of the year for the Federal Reserve Board and also the first reading on jobs which contains 2018 data. Thus far this year it seems that the economy continues to move forward, even without the anticipated effects of the tax plan. Of course, the anticipation itself has fueled much optimism which can be seen in record stock market closes. The performance of the economy is all about optimism. Since the Fed just raised their benchmark rates in mid-December, most analysts are not expecting another increase so soon. However, even if they do not raise short-term rates at this meeting, they will be discussing how much and how quickly they will be raising rates this year. How much and how fast will depend upon the strength of the economy. And major evidence of this strength will be released a few days after they meet in the form of the January employment report. December's job gains were a bit under forecast, and thus we will be looking at not only January's numbers, but revisions to the previous months' data. A really strong report could move the Fed to raise rates at their next meeting in March. Even if they do not, one thing is certain -- unless something happens to derail the economy, their only move is up this year. Keith Stewart 773-529-7000

December 12, 2017 Real Estate Report - Taxes, Jobs and Rates

We promised a busy December and certainly we have not been disappointed in this regard. We entered December with the tax legislation flying through the Senate faster than anyone would have predicted. This is not to say that the work is finished, as there are many differences between the House and Senate versions -- differences that must be reconciled in conference before the final package is put to a vote. While it seems like there are a few weeks left in the year, the holidays make it a very short month to get this accomplished. Though you can see that the stock market seems to be very optimistic that it will get done. Then we had the jobs report released. The economic numbers leading up to the report had been strong, and this had resulted in some optimistic expectations. In reality, the number of jobs created was even higher than expected. The unemployment rate of 4.1% keeps us near full employment and wage inflation continued to be tame. In addition, the average work week increased to 34.5 hours from 34.4 hours and 18,300 temporary workers were added. Taking the data into account -- along with the specter of a tax package passing -- there is little doubt left that the Federal Reserve will not be raising short-term rates this week. The announcement will be coming Wednesday afternoon and the Fed should be comfortable that the economy can withstand another increase as it returns rates closer to what it considers "normalcy." The stimulus of a tax cut will also place the Fed on high alert with regard to the threat of future of inflationary pressures. Keith Stewart 773-529-7000

Chicago's Mortgage Choice - October 3, 2017 Real Estate Report - Clouded Jobs Report

The jobs report is a very significant economic indicator. Yet, it seems that every monthly jobs report takes on some extra form of significance. This one is certainly no exception, with the report coming in the midst of the recovery from two natural disasters hitting major population centers within the United States. Hurricanes Irma and Harvey caused major damage to some of the largest states in America -- Florida and Texas -- as well as affecting several other population areas. Along with major damage, lives were changed radically. It is anticipated that we will certainly see the effects of these disasters in our economic numbers, and the jobs report should be the first major indicator. It was no surprise that initial claims for unemployment were up in the weeks after the hurricanes hit and that these additional claims were concentrated in the affected areas. The numbers may not be affected radically on a national level, but there are likely to be major changes regionally and these will affect the national numbers. How much? We will know by Friday. The good news is that these numbers should be temporary, as many jobs will be created in the rebuilding of affected areas. So, the markets will be prepared for one or two down months, but should be anticipating a rebound pretty quickly. The Federal Reserve Board meets two more times this year and most are expecting one more rate increase in December. The size and extent of the damage and rebound may very well be one of the determining factors in this decision. Keith Stewart 773-529-7000

Chicago's Mortgage Choice - September 26, 2017 Real Estate Report - Amazing Resiliency

Earlier this month, the bull market in stocks became the second strongest in history with a gain of over 260% from the bottom reached in 2009. It was already the second longest bull market in history. This is still way short of the strongest bull market in history, which achieved gains of almost 600% for the period of 1987 to 2000, but still very, very impressive. The secret to this market's success? Steady growth with low inflation. Of course, you can also add that this bull market followed precipitous drops during the financial crisis and thus much of it was clawing its way back up. Regardless of where it has come from, stocks have moved a long way through significant challenges and the question on everyone's mind is -- how long can this rally go on? As you would guess, there are opinions on both sides, with many analysts saying there is room to run, and others saying that stocks are being inflated by artificially low rates courtesy of the Federal Reserve Board. The Fed met last week amid this rally, but at the same time also had to consider additional challenges, such as national disasters and a ramp-up of international tensions. The Fed's decision to keep short-term interest rates unchanged and begin the paring of assets in October was right in line with pre-meeting expectations, though some had hoped for a delay based upon the recent challenges. Is the Fed justified in keeping rates so low, or should they hold off on the next hike expected in December -- until they see how well our economy recovers longer-term from the hurricanes which have hit so hard? Only time will tell, as we cannot predict the future any better now than we could in 2009. Keith Stewart 773-529-7000

Chicago's Mortgage Choice - September 19, 2017 Real Estate Report - Significant News for the Fed

Meetings of the Federal Reserve Board are very news worthy for the markets by themselves. On the other hand, thinking about how much news and data the Fed has to consider before they make a decision regarding interest rates and other activities is almost mind boggling. It is not as if they look at the jobs data and make a decision based upon that report. There are hundreds, if not thousands, of points of data to consider. Add the current events happening today, and one would not want to be in that decision-making position. Between Korean nuclear tests, Hurricane Harvey, Hurricane Irma, legislative and administrative actions, and more; there is no lack of information which might influence the Fed. In other words, the economic data is very complex, but adding all these other factors make the decision-making environment totally convoluted. Before the current events intervened, the betting line was that the Fed would announce tomorrow that they will start paring down their assets -- most likely starting in October. They were expected to hold open the possibility of raising rates again before the end of the year, but were not likely to act at this meeting. We believe that the current events make it even less likely that the Fed will raise rates at today's meeting and the decision to start paring down in October may still stand, but even this expected move could be delayed. Keith Stewart 773-529-7000

Chicago's Mortgage Choice - September 12, 2017 Real Estate Report - America is Tested Again and Again

All through our economic commentaries we always are fearful of making predictions. No matter how much information we have, there are always unknown factors which can change the future to a significant degree. There is no better example of this than what Texas and Louisiana just faced with Hurricane Harvey. An entire region of our country devastated with an amazing amount of support pouring in throughout the country. There is no doubt about the fact that this natural disaster will have a major effect upon our economy -- as well as Irma and whichever storms follow. From the devastation of local economies to gas prices, there will be a multitude of factors we will be facing. In the long-term there will be an economic revival as we rebuild lives, houses and infrastructure. We have rebuilt successfully before and we will rebuild again. America has always demonstrated our resiliency. However, there are major questions which will remain far beyond this event. For example, we all know that houses are expensive to build and "excessive" regulations are part of that equation. On the other hand, as the insurance companies continue to point out, the lack of adequate building and zoning standards in some areas of the country have increased the cost of rebuilding significantly. In other words, we have some very hard questions to address, questions which are very difficult to answer. And coming out with the right answers will help us pass this test in the future long after we rebuild this time around. Keith Stewart 773-529-7000

Chicago's Mortgage Choice - August 29, 2017 Real Estate Report - Fall Forward

Though the calendar states that fall comes later in September, Labor Day weekend is actually the real end of summer for most Americans. It means back to school for the kids and the end of vacation season. Congress is back in session after their August recess. Though many think that Congressmen go on vacation during recesses, most are back in their districts meeting with their staffers and gauging the temperature of their constituents. Fall starts the second homebuying season of the year. Though not as strong as the spring season, the fall is a time that people list their homes and want to be settled in a new home before the holiday season arrives. This fall we are hopeful that more are listing their homes because the market has been constrained by a listing shortage. Before we go out to enjoy the Labor Day weekend, we will have something of an economic report anomaly. Since the first day of September is on Friday, the employment report will be released early before the holiday weekend starts. Many will be on vacation this week and others will be leaving early for the holiday. Thus, the markets may be prone towards more volatility if there is a surprise in the report. If there is a surprise, it will be like saying -- Surprise, we had ___ jobs added. Have a nice holiday weekend to think about it! Keith Stewart 773-529-7000