Sue Fox, @Properties. Direct 773.816.1788
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Despite all the volatility in the stock and bond markets, mortgage rates are now at their lowest point in more than 50 years. The average 30-year fixed rate mortgage fell to 4.15% last week, according to Freddie Mac’s Primary Mortgage Market Survey. Rates have been below 5% for awhile now; previously, the record low (set last November) was 4.17%.
The extra-low interest rates make home buying more affordable than ever, particularly in Chicago, where home prices have dropped more than 30% in recent years. If you’re wondering where to find these rates locally, Guaranteed Rate is one Chicago lender now offering a 4.15% rate on a 30-year fixed loan, while a 15-year fixed mortgage can be had even cheaper: 3.525%. The rate for 5-year adjustable rate mortgage is just 3.125%.
Money to buy a home — if you can qualify for the loan! — is now incredibly cheap. It’s hard to find even a car loan or a student loan with such rock-bottom rates, let alone a mortgage. Mortgage rates closely track yields on U.S. Treasury bonds, which have also dipped. The 10-year note hit a record low on Thursday, falling below 2 percent to 1.99 percent.
If you’ve been considering buying a home (whether to live in yourself, as a second home, a home for your child or as an investment property to fix up and sell — all of which I’ve had buyers recently searching for) now may be the time to act. It is rare to find both interest rates and prices simultaneously so low.
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