In the past month, there's been a mix of economic indicators that has economists debating whether inflation or a recession is the biggest issue in regards to moving the U.S. economy forward.

And all of this talk has sent mortgage rates higher for one reason or another. Back in mid-January mortgage rates hit a 4-year-low based partly on fears the U.S. economy was headed into or already in a recession.

Experts say the time to buy a new home is now!

Here's why:
1. Interest rates are low
2. The selection couldn't be better
3. Prices have dropped

But does that mean that now is the right time for you? If you're anything like me, and committing to an expensive pair of shoes makes you worry, then it's understandable that you might be a bit aprehensive to jump into the housing market.

For a first time homebuyer (and probably some 2nd, 3rd and 4th time buyers too!) the steps you take to secure a mortgage can be tricky. A lot of phrases get tossed around and if you haven't done your homework, then they're probably totally foreign to you! But, as a person who had absolutely no idea what she was doing when she set out to look for a new home, I can tell you, it's not as scary as it seems! There are 4 basic concepts regarding your mortgage that you should understand when you decide to buy a home. Here they are, explained:

It has been tough going in the housing market lately. We're stuck in a cycle where many homeowners can't sell their current home and then in turn buy a new home. And on top of that, securing a mortgage has gotten harder for many of us.

It's anybody's guess on where the housing market goes from here, but there are a few positives in the current market for buyers -- interest rates remain attractive, there's plenty of homes on the market, and prices continue to drop.

Bob Walters, chief economist at Quicken Loans, tells bankrate.com that today's housing woes present a historic opening for millions of homebuyers.

You can read more about what Walters says in the article on bankrate.com.

Mortgage rates have held steady this past week, according to bankrate.com. Overnight in Illinois, average rates on 30-year fixed mortgages in Illinois rose 2 basis points to 5.80 percent.

Click here to read more on mortgage rates in Illinois.

Good news for those looking to buy a new home or refinance a mortgage. According to Freddie Mac, Mortgage rates moved lower this week to their lowest levels in a month. Nationally, 30-year fixed-rate mortgages averagedd 6.01 percent for the week ending May 15th. In the upper Midwest region, that rate was slightly higher -- averaging 6.05 percent.

Read more after the jump ...

As the Federal Reserve continues to fight a struggling economy and inflation, mortgage rates continue to creep higher.

According to the mortgage company, Freddic Mac, the 30-year fixed rate mortgages averaged 6.32% last week. That is up sharply from 6.09% the previously week. Read more.

More on Illinois rates after the jump ...

For the fourth straight week, the average mortgage rate has increased. According to Freddie Mac, the mortgage company, the average 30-year fixed rate mortgage is averaging 6.42%. That's the highest level since last September.

Read more after the jump about how inflation concerns is driving up the mortgage rates.

If you are out looking for a mortgage ... you'll be happy to know that the average 30-year fixed rate mortgage in the US is down this week. According to Freddie Mac, the 30-year fixed rate mortgage is averaging 6.52 percent with an average 0.7 point. That's down from 6.63% from a week earlier.

Big hype has surrounded the Housing and Economic Recovery Act of 2008 that was just signed by President Bush. But what does it really mean for home buyers? Well, if you're a first-time buyer it can mean about $7,500!

It's a rough time out there when it comes to securing that mortgage. But, the good news is with some homework and fiscal responsibility, you can secure that mortgage and move into the home of your dreams.

We sat down with a local mortgage expert to talk about what you can do to secure that mortgage.

Check out the video below

Perhaps you're like me and when money matters arise, your eyes start to glaze over. (Unless of course, someone is telling you that you've won the lottery or something, but that hasn't happened to me...yet.) If budgets and finances and spreadsheets (oh my!) don't top your list of interesting conversations, then my guess is that the topic of mortgages is probably somewhere at the bottom of the list - like right between toilet cleaning and toenail clipping. Unfortunately, if you're looking into buying a home, then you'd better brace yourself for plenty of conversations containing the word "mortgage." In order to get you brushed-up on your mortgage knowledge, we've compiled some quick-tips that will help get you through all of those conversations - and hopefully make the process of buying a home just a little bit easier.

You know, so when you win the lottery and buy that second home in Malibu you're an old-pro :)

Check out the videos after the jump...

The big news in real estate this week is, of course, the bailout of Fannie Mae and Freddie Mac by the federal government. The move was made in order to help stabilize the market and allow prices to begin to rebound. Word on the street is that this will also create a dip in 30-year mortgage rates, allowing more people to make a move on that new home, thus speeding up the healing process for the market.

For those of you looking to buy a new home, there's some good news. Mortgage rates have fallen to their lowest levels in months. And it has a lot to do with the government's takeover of Freddie Mac and Fannie Mae.

According to Freddie Mac, the average 30-year fixed-rate mortgage fell this week to 5.93 percent. That's the first time since May the average has fallen below 6 percent.

As upbeat as we'd like to be about the current market (and believe it or not, there really is a silver lining - especially for new buyers) the fact is, many people are losing their homes due to foreclosure. And these days, you just can't have enough information when it comes to real estate. According to Freddie Mac, there are warning signs that you can look out for to avoid losing your home.

Yup, I thought that might get your attention.
In case you haven't caught the news lately, the economy has seen sunnier days. But while the decision-makers in DC try to hammer out a plan that will stick, first-time home buyers already have what they need to get out there and take advantage of this housing market. There is, of course, the big federal tax credit for first-timers that we've heard so much about - but did you know that our state and city governments are offering some financial perks as well?

The House's Monday rejection of the plan to bail out the financial industry may have blown everyone else away, but Fannie and Freddie didn't seem to notice much. Mortgage rates have actually remained pretty stable since the federal government seized Fannie Mae and Freddie Mac last month.

Okay, so the credit crisis has forced many of us to rethink buying a new home. But, the good news is that you CAN still get a mortgage in today's market. You just have to understand the new rules. We recently spoke with a mortgage banker about how YOU can secure that mortgage and buy that home you fell in love with.

Stupid question? Not really. A lot has changed in the market over last couple of years - and that includes the mortgage market. Okay, so maybe the definition of mortgage hasn't changed, but plenty of other things have. And that's why if you're in the market for a home - even if it's not your first time - it's not a bad idea to familiarize yourself with the basics all over again.

If you've been paying attention to the news this week then not only are you sick of hearing the word "bleep" but you probably also know that interest rates have plummeted. Been thinking about buying a home? As far as interest rates are concerned, there's literally never been a better time...

30-year fixed rate mortgages are now down to 5.01 percent, according to Freddie Mac's most recent Primary Mortgage Market Survey. That's down from just last week when it averaged 5.10 percent. This is the lowest it's been since Freddie Mac began conducting the survey in 1971.

More info after the jump...

President Barack Obama announced today his plan to help millions of homeowners keep their homes.

According to the Associated Press:

"The initiative is designed to help up to 5 million borrowers refinance — if their mortgages are owned or guaranteed by Fannie Mae or Freddie Mac. It also provides incentive payments to mortgage lenders in an effort to convince them to help up to 4 million borrowers on the verge of foreclosure."

You can read the full story here.

The Obama administration announced details of the $75 billion plan to stabilize the housing market. While it likely won't help everybody who needs it, the Obama administration says it will help as many as 9 million homeowners refinance or modify their mortgages.

You can read more about the plan at chicagotribune.com and you can get complete eligibility requirements on the government's economic recovery website: www.financialstability.gov.

If you've been sitting by, waiting for mortgage rates to get nice and low before going for that refinance - this could be the time! After the Fed's announcement that it would buy another $750 billion worth of debt this year we could be seeing the cheapest mortgages most of us will probably ever see.

Today is tax day -- Do you have a big tax bill? Are you still procrastinating writing the check and dropping it in the mail?

Maybe this will cheer you up for your 2009 taxes! Remember the federal government is giving you a tax credit of up to $8,000 for qualified first-time home buyers purchasing a principal residence on or after January 1, 2009 and before December 1, 2009. Unlike the tax credit enacted in 2008, the new credit does not have to be repaid. Read more from National Association of Home Builders.

If you're facing foreclosure or even if you're just begining to feel the heat of a mortgage that you can no longer afford, you may want to check out this mortgage solution event at McCormick Place July 24 - 27th.

Cook County Board President, Todd Stroger has been working with the Neighborhood Assistance Corporation of America since last fall to secure some relief for struggling homeowners. This "Save the Dream" event will allow those homeowners to meet face-to-face with their lenders to restructure their loans and obtain lower interest rates in order to prevent foreclosure - all in the same day. Representatives from each of the participating lenders will be on-hand and homeowners wishing to avoid long lines can register ahead of time.

Keep reading to see participating lenders and requirements...

If you've been following the constant changes in the world of home-buying, then you've probably heard of the HVCC, or Home Valuation Code of Conduct. It affects appraisals and boy, is it getting people talking. The idea behind HVCC is that if you keep the lender from having contact with the appraiser then they can't influence the appraiser to inflate a home's value. Appraisals must now go through third-party providers, who hire an independant appraiser to do the work. Critics say there is a major flaw in the system because the jobs end up going to the lowest bidders; appraisers who aren't necessarily familiar with the neighborhood or comps where they are working, resulting in a lower appraisal than is appropriate.

In light of the changes in how appraisals are regulated, it's more important than ever that you do your part as a homeowner to be sure that you get a fair appraisal, whether you're selling or refinancing. Here are a few tips, as seen in Money Magazine, to help you get there.

1. Know the rules; understand the flaws. Get familiar with HVCC and all the hoopla surrounding it. If you have the information, you'll be better equipped to deal with your appraiser and assist him/her during the process.
2. A little bit of detective work goes a long way. A big part of an appraisal is the recent sale price of the comps. Numbers may not lie, but it helps to know the circumstances surrounding especially low sale prices. If you happen to know that a divorce or job relocation was behind a sale, then share that information with your appraiser.
3. A clean house can help your numbers. Appraisers are only human and let's face it, most of us reward cleanliness and frown upon messiness. Spiff your house (and your yard!) up before the appraisal so that you're putting your best foot forward.
4. Be your home's biggest cheerleader. Put together a list of its best attributes (including location!) and any upgrades you've done since your last appraisal. An appraiser under time pressure can miss things and they'll appreciate the heads-up on the good stuff.
5. Get a copy. Lenders are required to give you a copy of your appraisal. If you feel like the numbers aren't where they should be, take a closer look at the details. If there are errors in stats like square footage, contact the appraiser directly to request that the mistake be corrected.

The Chicago Tribune reported yesterday that the average interest rate for a 30-year fixed mortgage dropped to 4.71% this week, the lowest we've seen in 38 years. Borrowers are still expected to have stellar credit and put 20% down in order to get the best rates, but hopefully the lower rates will entice more buyers to get into the market.

Click here for the whole article.