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Lower Rates Mean Good News for Chicago Homes

Date : November 27, 2012

PMMSAre you aware of the drop in mortgage rates last week?  If not, take a look at the most recent rates released by Freddie Mac in the Primary Mortgage Market Survey®.  Throughout 2012 we have seen low rates, however they decreased even more this week, prompting many to consider buying and/or selling their Chicago homes.

With an average 30 year fixed rate at 3.31 percent and the rate on a 15 year fixed at 2.63 percent, Chicago home buyers have increased opportunity to purchase any type of Chicago property, from a Bucktown condo to a Gold Coast luxury home. Although the rate averages include points of .7 and .6, they still remain lower than any time in 2012, according to Freddie Mac. These historically low rates may allow you as a Chicago home buyer a smaller monthly mortgage payment or possibly qualify you for a larger home.

Frank Nothaft, vice president and chief economist at Freddie Mac, pointed out the trend, saying, “Fixed mortgage rates continued to ease somewhat this week to record lows and should help the ongoing housing recovery.” Nothaft also commented on increased builder confidence, “Already, new construction on homes was up 3.6 percent in October to the strongest pace since July 2008. In November, homebuilder confidence rose for the sixth straight month to its highest reading since June 2006 according to the NAHB/Wells Fargo Housing Market Index,” he said. “And existing home sales increased 2.1 percent in October to an annualized pace of 4.79 million, exceeding the market consensus forecast.”

This news may mean that Chicago home buyers may have trouble finding a home for sale, since inventory has been reduced of late, even though they can qualify to buy a home in Chicago.  Chicago home sellers are seeing resultant increases in home prices and even multiple offers. If you are at all interested in selling a home in Chicago, these trends are worth considering.  Call us at 773.235.6100 to learn how we can help you buy or sell a Chicago home!   Learn about rate trends from Freddie Mac byclicking here.

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