Lower rates, more inventory, and red tape lifting on short sales could mean that now is a great time for Chicago home buyers! According to the Primary Mortgage Market Survey® (PMMS) results posted yesterday, November 8th, by Freddie Mac interest rates are continuing to be low, with the 15 year fixed rate even dipping below last week’s rates. This is also good news if you are a Chicago home owner with hopes to sell this winter.
Along with the low rates, Freddie Mac has also announced last week that nine delegation agreements were signed with mortgage insurance companies permitting Freddie Mac servicers to approve short sales more easily. These announcements may spur the Chicago real estate market, resulting in more sales in the coming months and new year. It also keeps homes at risk of foreclosure available to Chicago home buyers, too, by allowing them to enter enter the short sales process.
Senior Vice President of Servicing and REO at Freddie Mac, Tracy Mooney, applauds the news as it will allow distressed buyers to avoid foreclosure. “We applaud the nation’s mortgage insurers for committing to work with us and our servicers to help more borrowers obtain short sales and other foreclosure alternatives,” she stated. “By paving the way for more borrowers to avoid foreclosure, today’s announcement will support the housing recovery and help reduce taxpayer losses.”
Current rates averaged 3.40% (.7 points) on a 30 year fixed rate mortgage and 2.69% (.7 points) on a 15 year fixed rate loan last week, according to the PMMS. The 5-year Treasury-indexed hybrid adjustable rates were lower, too, with an average 2.73% (.6 points) and the 1-year Treasury-indexed adjustable rates came in at 2.59% (.4 points), which shows a definite trend.
At Sergio and Banks, we want to help Chicago home owners and home buyers in whatever way we can. If you have a Chicago property that you are interested in selling as a short sale, please call us to discuss the new options made available with these announcements from Freddie Mac. To read the details directly from Freddie Mac, please click here.