If you are considering buying a Chicago home, this may be the time to lock in your mortgage interest rate. According to reports released from Frank Nothaft, chief economist and vice president of Freddie Mac, fixed-rate home mortgages rose for the third week in a row, following bond yields higher. While this means the economy may be improving, it poses a challenge to those trying to buy a home in Chicago.
Thirty year mortgages averaged 4.46% on December 2nd, a rise from last week’s 4.4&% average. This same conforming loan averaged about 4.7% last December. Other loans, both fixed and adjustable, have also been on the rise.
With these reports, Freddie Mac is also indicating that home pricing has decreased. According to Nothaft, “House prices indices, however, are trending downwards. The 12-month growth rate in the S&P/Case-Shiller® 20-city index eased from 1.7 percent in August to 0.6 percent in September. Only six of the cities had positive annual growth, compared to nine in August.” For more information, click here.