Live - From Chicago's Northwest Suburbs (Palatine, Schaumburg, Buffalo Grove IL etc.) - Mortgage rates continue to rise (from a low of the 4% area to 5.2%)

Live - From Chicago's Northwest Suburbs (Palatine, Schaumburg, Buffalo Grove IL etc.) - Mortgage rates continue to rise (from the low not so long ago in the 4.17% area to (lets round it up slightly) 5.2% for a 30 year fixed.

Now Ben Bernanke's goal with his Planned Open Market Operations (POMO's) was to help mortgage interest rates - but apparently - that plan is backfiring.

Since 4.17% -- home prices will have to come down more than ten percent.  in order for a buyer to have the same monthly payment. 

For example, for a $300,000 mortgage - the monthly payment was $1,432 when rates were around 4%.  That same 300k loan at 5.2% constitutes a payment of  $1,647/mo - about a $200/mo increase.  At 5.2% - each $10,000 equals about 54 bucks a month.

This is just one of many macro-economic facts we bring up when negotiating for our home buyer clients. 

On the micro-level, we use comparables, the seller's situation (and knowledge of their equity in a property), knowledge of negatives about various town plans, and much more.

If a seller is at the same price they were at a few months ago - and it wasn't selling then - they need to come down!

Here is a list of low price homes (including short sale, foreclosure / bank owned / REO, and pre-foreclosure) homes in Palatine IL.

If something looks like it is of interest to you, feel free to give me a call at 847-566-7558 to see if you qualify for being one of our clients.

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if you are serious about buying a home in the Chicago area within the next 90 days - feel free to contact me. As an Exclusive Buyer Broker (always on the buyer's side - never on the seller's side) I work with a select number of clients - so that I can provide the highest possible level of service. (My clients receive a lot of personalized research and attention - which by it's very nature, takes time - but has high payoff.)

Feel free to visit the Buyer Broker Chicagoland web site for more information.

Download our high-tech GPS-enabled Chicago area home search application onto your cell phone (works with any type of phone - as long as you have web browsing capability) by texting BBC to 87778.

Call 847-566-7558 or Toll Free at 866-493-2842 or e-mail to schedule a complimentary initial consultation – so that I can determine if you are qualified to be a client. Thanks and have a great day!