Variety is the key ingredient of Bucktown, Chicago’s west side neighborhood located within the larger community of Logan Square. Older architecture and newer builds house a diverse population and a vast array of businesses, including arts and entertainment purveyors and restaurants. Today, it is considered one of the trendiest neighborhoods in the city, both as a spot for nightlife and a place to take up residence.

Bucktown has seen several different population surges from peoples of differing ethnicities and walks of life. Deriving its nickname from the herds of goats raised by the region’s first settlers in the mid 19th century—primarily Polish immigrants—the streets reflected the sensibilities of those settlers, being named after Polish cities and historical events. For a time, the area was referred to as “Little Poland” or “Polish Downtown.” A wave of German-born settlers in the early 20th century had those streets altered into Germanic names such as Hamburg and Berlin, and anti-German sentiment during the First World War had those names changed again into the familiar, Anglo-Saxon varieties seen today. The community additionally has a significant population of Latinos, who surged into Chicago in the middle part of the 20th century, and a more recent influx of young artists has also influenced the growing prosperity of the neighborhood. This blending of different cultures and styles has helped Bucktown attain its unique character today.

In terms of real estate, the neighborhood mixes classic, century-old architecture with newly refurbished loft spaces and condominiums. Its growing attraction for young professionals led to new homes being built with high-end features, such as stainless steel fixtures and rooftop balconies. One can find homes of all sizes in the area, both for single professionals and single families. The businesses range from storefront boutiques to late-night lounges, and the choices for dining are among the most extensive to be found in any of the city’s neighborhoods.

Market Comment
Mortgage bond prices were higher last week, which helped mortgage interest rates improve. The Euro debt crisis dominated trading as market direction swung rapidly on news articles throughout the week. Last Tuesday, Fitch Ratings reported that French triple-A credit was safe. Spain and Italy had decent debt auctions. These events kept MBS prices in check early in the week. Fortunately, higher-than-expected jobless claims Thursday and S&P Ratings downgrade rumors for France on Friday pushed MBS prices in the right direction.

Mortgage bonds ended the week better by approximately 3/8 to 1/2 of a discount point.

European Turmoil
The newswires were full of European downgrade rumors last Friday as French news reports indicated France and four other countries would soon see their credit ratings downgraded. Spain, Portugal, and Italy were rumored to face a two-notch credit rating cut while France would lose its triple-A rating. This would likely put additional pressure on Germany, despite the fact it is expected to maintain triple-A status. The European Financial Stability Facility is a special entity created to help fight the European debt crisis. The EFSF relies heavily on France and Germany to fund the loans it provides to troubled Eurozone countries.

This news came amid earlier reports that banks holding Greek debt failed to come to an agreement on a write-down and reignited fears of a Greek default. Charles Dallara, the head of the Institute of International Finance that is representing the banks in EU negotiations, indicated “there is no agreement on any element of a deal.” Things don’t look good for Greece.



Copyright 2012. All Rights Reserved. Mortgage Market Information Services, Inc. www.ratelink.com. The information contained herein is believed to be accurate, however no representation or warranties are written or implied.

Arguably the most famous of Chicago’s South Side neighborhoods, Hyde Park is considered a prime example of urban renewal and renaissance. Originally founded as a township in the mid-1800s, Hyde Park remained independent of the city until its annexation in 1889. After a period of economic decline in the 1950s and 1960s, Hyde Park has bounced back to become a diverse community and hub of education.

Hyde Park’s introduction to the city was as the site of the Columbian Exposition in 1889. This internationally anticipated event included a number of architectural and cultural innovations, including Daniel Burnham’s “White City” and the world’s first Ferris wheel. Due to both the Exposition and the early work on the University of Chicago, the neighborhood experienced a rapid growth, more than tripling its population inside of 50 years. The University attracted several successful businessmen and noted scientists, as well as a number of noted theological schools, producing an area that today boasts the historical talents of nearly 100 Nobel Prize laureates. The University also spearheaded the project of renewing the neighborhood after the mid-20th Century decline, founding the Hyde Park-Kenwood Community Conference, whose stated goal was to create “an interracial community of high standards.” Hyde Park today reflects a significant measure of success achieving that goal, with many middle-class residents of various ethnicities sharing the neighborhood. Schools are considered of high quality, and the neighborhood artfully combines both development and green space.

In addition to its rich, diverse culture, Hyde Park is home to a handful of historic attractions. The Museum of Science and Industry, housed in the last remaining building from the Columbian Exposition, includes several noteworthy exhibits, including the captured German U-boat 505. Frank Lloyd Wright’s Robie House, which heralded the rise of the Prairie-style home, is considered a marvel of American architecture and offers tours. The Renaissance Society, Chicago’s oldest contemporary art museum, hosts not only art exhibits but also performance and film.

Market Comment
Mortgage bond prices were slightly higher last week, which kept mortgage interest rates relatively in check. We started the week with worse rates, as stocks surged higher following the extended holiday weekend and the DOW was up 225 points at pricing Tuesday morning. Fortunately, weaker-than-expected factory orders data Wednesday helped reverse the upward trend in rates and got us back near unchanged on the week. The European debt crisis continued, which generally helped US debt instruments.

The Treasury auctions this week will provide an indication of foreign appetite for US debt.

Looking Ahead

Employment Results
The December employment report came in stronger than expected, with the headline rate surprisingly lower and the jobs figure better than expected. Fortunately, stocks took a dive later Friday morning and rates were able to rebound a little later in the morning, recovering the initial weakness.

Unemployment came in at 8.5%, considerably better than the 8.7% rate that was expected and not bond friendly. The payrolls component showed jobs increased 200,000 compared to the 150,000 increase expected by analysts. The mortgage bond market had an initial negative reaction to the report.

The Bureau of Labor Statistics (BLS) of the U.S. Department of Labor compiles data from two different surveys — the household survey and the establishment survey — in order to complete the employment report. This explains why sometimes there is a divergence between the unemployment rate and payrolls figures each month. The payrolls figure usually receives the greater weight from analysts but the headline figure covers the news headlines.

Job gains occurred in transportation and warehousing, retail trade, manufacturing, health care, and mining.

Copyright 2012. All Rights Reserved. Mortgage Market Information Services, Inc. www.ratelink.com. The information contained herein is believed to be accurate, however no representation or warranties are written or implied.

Chicago’s River North area, located between Michigan and Chicago Avenues and the river on its south and west borders, has undergone several transformations in its long history near the heart of the city. For approximately a century, the area was a central hub of industry, including its attendant pollution, and was nicknamed “Smokey Hollow.” From the mid-1940s to mid-1970s, the manufacturing district gradually gave way to emptied warehouses and abandoned properties, creating an unattractive “skid row” just to the north of the bustling downtown.

In 1974, developers began making strides to transform the area into a destination for arts and culture. Low-cost space was marketed to create galleries for photography and other art, and in time it created the River North Gallery District—today, the second-highest concentration of art galleries to be found in the country, outside of the gallery districts of Manhattan. Other highlights of the neighborhood include the majestic Holy Name and St. James Cathedrals, located on the northeast side; the home and interior design shops near Merchandise Mart; and several vibrant, theme-based restaurants and nightclubs.

Housing has sprung up around this appealing, lively area, specifically in the form of condominiums in skyscrapers or mid-rise buildings. Some buildings have been rehabbed and many warehouses have been converted into upscale lofts. Single-family homes, however, are less likely to be found. The Marina City Towers, a architectural landmark famous for their “corncob” design, are also located in River North.