Chicago Real Estate News & Neighborhood Notes - Chicago Mortgage News

Housing Market Hits Level Not Seen in 15 years

The nation’s housing market just hit a level it hasn’t seen in about 15 years, and that’s not exactly a good thing for borrowers. This past December, the average rate for a 30-year fixed mortgage was 3.11-percent. 

Recently, the average rate went up to 4.72-percent. That can make a real difference when it comes to monthly payments.

It could mean hundreds of extra dollars each month, or even more than an extra $100,000 over the course of a 30-year loan, depending on the size of the mortgage. The recent mortgage rate hike has some experts saying buyers are in a similar situation as they were in 2007. 

That’s the last time the mortgage-payment-to-income ratio topped 29-percent, but it appears we’re now seeing the same thing. According to recently…

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Mortgage Rates Expected to Rise in 2022

If you’re planning to finance a new home or refinance in 2022, the new year could be ushering in higher mortgage rates. While the Federal Reserve doesn’t exactly set mortgage rates, its actions are in some way tied to rates.

Due to the fallout from COVID-19 and its impact on the economy, almost a year ago the Fed started buying up a certain type of bond that helped rates go low and stay low. Those rates can’t stay low forever, though.

Recently the Fed announced it plans to begin tapering off the monthly purchase of mortgage-backed securities in 2022. That’s expected to begin in January, with an end to it in the coming months.

Previously the plan was to stop in the middle of the year, but now that plan has been accelerated. In turn, it means mortgage rates…

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Tips For Securing a Mortgage in 2022

As we enter a new year, some people are preparing to buy a new home. Over the course of 2021 we experienced high home prices and a limited number of homes on the market. But what about 2022?

If you’re considering buying a new home you likely need a mortgage. You’ll want to put yourself in a good position to qualify for a home mortgage. Here are a few tips to help you out:

Tip #1 Compare lenders

Each lender out there has the ability to set its own rates. If you compare lenders by shopping around a bit, you may end up with a better deal. Keep in mind, though, every time a lender pulls your credit report it’s a hard inquiry. Too many spread out over too long could bring down your credit score.

Tip #2 Know what’s on your credit report

It’s…

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Booming Housing Market in Chicago Could Be Easing Up; Time To Make a Move?

The housing market in the Chicago-area has been booming, but recently released data shows the market could be easing up from what we saw over the spring and summer seasons. From January to June of 2021, the median home sale price in Chicago’s nine-county metro area hit $300,000.

According to data from the Illinois Association of Realtors, that’s up more than 16-percent when comparing the first half of 2021 to the first half of 2020. The data also shows homes were on the market between March and June of this year for about 38-percent less time. In addition, the market saw about one-third fewer homes even listed for sale during those months.

Despite all of the figures, some experts say the early 2021 enthusiasm could be cooling. They say they’re starting to…

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Economists: "Remote Work Will Continue To Be a Significant Driver of Housing Demand For Years To Come"

Last year was a year of changes for many, and perhaps most notably among homeowners who are now working from home. With many employers opting for remote scheduling during the duration of the pandemic, employees have started reevaluating where and how they live, and according to some statistics, nearly 40% of those workers still don’t know if they’ll be gong back to the office any time soon.

As a result, workplace flexibility has become a top priority for many of America’s workers, which not only gives them the freedom to live where they want but also an opportunity to move to a place where they’re happy and more productive.

It’s because of the new work from home phenomenon that many housing markets across the country are booming, creating serious supply…

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New Data Shows Home Sales Up In August

Newly released figures show new home sales up for the month of August. The data comes from new reports credited to the Department of Housing and Urban Development and the US Census Bureau.

On a monthly basis in August, new home sales were up  more than one-percent over July’s revised rate of 729,000. For August of this year, sales of new single-family homes were at an annual, seasonally adjusted rate of 740,000. Still, when comparing year-over-year, the August 2021 rate of new home sales was more than 24-percent below the estimate of 977,000 for August 2020.

The new report puts the median sales price of new homes sold this past August to just over $390,000. In comparison, the average sales price for the same time period was more than $443,000.

The figure…

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Mortgage Rates Still at ALL-TIME LOWS in August Making Now the BEST TIME TO BUY IN DECADES

Mortgage rates have moved even lower thanks to the COVID-19 delta variant continuing to spread at a rapid pace. According to the latest figures, 30-year fixed mortgages spend a considerable amount of time under 3% last month, and 15-year fixed mortgages remained at historic lows.

As of early August, Freddie Mac reported the following national average for mortgage rates, making now about as good of a time as we’ve seen in decades to renovate a home, refinance an existing mortgage, or purchase a new home:

• 30-year fixed-rate mortgages averaged 2.77% during the first week of August, falling from 2.8% the week prior. Around the same time last year, 30-year fixed mortgage averaged 2.88%.

• 15-year fixed mortgages averaged 2.10% during the first…

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New Analysis Shows Homes Sell FASTER When Listed on a Thursday

With summer in full swing and the busy fall season right around the corner, you might be prepping your home or condo to be listed as you prepare for an upcoming move. And with market conditions a little wild and crazy right now, everything you do can have an impact on how quickly you get your home sold.

If this sounds familiar, you might be interested in new findings from Zillow.

According to their analysis, homes listed in on a Thursday in Chicago sell faster than any other day of the week, while homes listed on a Saturday tend to linger on the market longer.

This trend also rings true for homes listed nationwide, with new Thursday listings moving 3 days faster on average.

Although this might seem like a minor detail, homes sitting on the market for even…

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Market Update: A Look Back at Chicago's Spring Market & How It Stacks Up to Last Year

The spring season leading into summer has traditionally been a busy time for the housing market nationwide. This year, however, the average number of sales actually dropped 0.2% from April to May.

But even despite the slight decline on a national scale, home sales in Chicago actually climbed 4.3% in early-to-late spring, according to the May National Housing Report from  RE/MAX LLC.

Across the country, lack of inventory has continued to be an issue facing most markets, and in many cases that can be directly linked to fewer people buying this spring season. The demand, as noted just about anywhere, has certainly been there. But supply has prevented some would-be buyers from successfully securing a new place to call home.

In Chicago, the number of months’…

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What Chicago Home Buyers Need to Know About VA Loans

If you’re comparing home loans, you’ve probably come across VA Loans.

Sure, they sound appealing. Afterall, a VA Loan can mean as little as $0 down.

The catch, of course, is that not everyone qualifies.

This type of loan first came about in the mid 1940s. The idea was to help service members who didn’t necessarily have excellent credit or a down payment to buy a home.

To this day, VA Loans still make it possible for veterans and active military members to purchase a home.

To get a VA Loan, you have to either be a

• Veteran
• Active service member
• Military Spouse (certain qualifications)

A Certificate of Eligibility, or rather COE, is used to confirm you do indeed qualify for the benefits of a VA Loan.

If you do qualify, a…

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