Despite what appears to be a spotty recovery in the Chicago Real Estate Market, rates for the money to buy real estate here is still near historic lows. With last weeks natural disasters in Japan, and turmoil in Libya, average interest rates seem to be falling once again.
Last week, statistics compiled by U.S. Mortgage Investor and Guarantor, Freddie Mac, as reported in the March 17th Los Angeles Times, showed average 30-year rates nationwide falling to 4.76%, from 4.88% the previous week. Those with excellent credit credentials and strong down payments - in excess of 20% down - are seeing even better rates. In some cases, these new low rates are approaching just slightly higher than 4.5%.
Average 15-Year Fixed Rate Loans, according to Freddie Mac, are even lower - 3.97%. Points and fees average 0.7% of the loan balance.
Some home borrowers are considering adjustable rate loans once again - those made popular during the housing boom a few years ago. Last week, a Five-Year Adjustable-Rate Mortgage (ARM) started out at 3.57%, after which the rate adjusts annually. Some consider this a risk they would not want to take, however - especially given the relative security of low-interest fixed-rate loans.
Typically, Mortgage Interest Rates tend to get their lead from rates on 10-Year U.S. Treasury Bills. Before the earthquake and tsunami in Japan just over a week ago, average 10-year T-Bill rates were roughly 3.4%. Last Wednesday, March 16th, the rates were just over 3.2%.
These new low rates may be short lived, however. T-Bills ticked up a bit on St. Patrick's Day, March 17th, as a new report indicated U.S. Inflation is heating up a bit, fueled, in part, by higher gas prices. Middle East unrest is a partial culprit here.
Please see our post today via BlogChicagoHomes.com.
DEAN & DEAN'S TEAM CHICAGO
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