Home loan roller coaster plunges to all-time low of 2.98%

(Above) Homes in the Edgewater Square II development. Prices for single-family homes in Edgewater rose 22.9% in the second quarter of 2020 to a median of $ 775,000.

20-Jul-20 ?? Home loan interest rates have fallen to an all-time low of 2.98% nationwide, the lowest ever recorded by Freddie Mac? Primary Mortgage Market Survey, which dates back to 1971.

Mortgage rates fell below 3% for the first time in 50 years, according to Sam khater, Chief Economist of Freddie Mac. The drop has led to a surge in demand from home buyers.

?? However, the offsetting force for the economy has been the increase in new cases of the virus, which has caused the economic recovery to stagnate, ?? says Khater (left). This economic break puts many temporary layoffs at risk of ossifying into permanent job losses.

The 30-year benchmark fixed rate mortgage (FRM) average fell to 2.98% for the week ending July 16, from 3.03% the week before. A year ago, the 30-year FRM averaged 3.81%.

15-year fixed rate loans averaged 2.48%, down from 2.51% a week earlier. A year ago, 15-year fixed rate loans averaged 3.23%.

Freddie mac

This means Chicago homebuyers and families looking to refinance now have a unique opportunity to lock in the lowest mortgage interest rate in five decades.

On July 17, Mutual of Omaha cited a bottom of 3%, RateSeeker reported. As part of an aggressive lending program involving pledged money market funds, the Huntington Bank was quoting 2.325% on a seven-year variable rate jumbo mortgage (ARM) with a 25% down payment, according to the broker. mortgages. Brian Bockholdt.

Before the recent sharp drop in interest charges, mortgage rates last hit an all-time low on November 21, 2012, when the 30-year fixed mortgage average hit 3.31%, according to Freddie files. Mac.

North Side Home Sales Contracts Rise

While overall sales of closed homes in June were down, there has been an increase in sales contracts written but not yet concluded, noted Marie Jo Nathan, which establishes the quarterly Chicago North Side Market Report for the Charese team at Compass Roscoe Village.

?? North Side contracts were up 14.4% in June from the same month last year and earnings were extremely strong in three communities: Edgewater, North Center and Lake View, all of which saw increases of 30% or more ?? Nathan says (right).

Marie Jo Nathan

The report tracks home sales in nine neighborhoods ?? Edgewater, Lake View, Lincoln Park, Lincoln Square, Near North Side, North Center, Rogers Park, Uptown and West Ridge.

Sales closed in the second quarter were almost equally reduced in the detached and adjoining segments of the North Side market. Single sales fell 32.2% to 215 homes, while tied sales, primarily condominiums and townhouses, fell 33.2% to 1,908 units.

However, the median price of the two categories has moved in opposite directions. Selling prices for condos and townhouses rose 7.9% to $ 369,450, while median prices for detached single-family homes fell 9.7% to $ 935,000.

The average time it took for a listing to close a deal increased only modestly during the second quarter on the North Side. Townhouses lasted an average of 75 days, up eight days from the previous year, while single-family homes lasted an average of 112 days, an increase of six days.

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