Chicago New Homes More Affordable with Low Mortgages

July 12, 2012

money houseChicago new homes just got even more affordable as mortgage rates continued to set new record lows this week. The average 30-year fixed-rate mortgage, a popular option among home buyers, has matched or set record lows for 10 of the last 11 weeks according to Freddie Mac‘s weekly market summary.

“Recent economic data releases of less consumer spending and a contraction in the manufacturing industry drove long-term Treasury bond yields lower over the week and allowed fixed mortgage rates to hit new all-time record lows,” said Frank Nothaft, vice president and chief economist for Freddie Mac.

Here’s an in-depth look at rates for the week ending July 5:

  • 30-year fixed-rate mortgages: averaged 3.62 percent, which breaks the previous all-time record low of 3.66 percent. This time last year, this number was at 4.60 percent.
  • 15-year fixed-rate mortgages: averaged 2.89 percent, which breaks the previous all-time record low of 2.94 percent. This time last year, this number was at 3.75 percent.
  • 5-year adjustable-rate mortgages: averaged 2.79 percent, which matches last week’s average. This time last year, the number was at 3.3 percent.
  • 1-year ARMs: averaged 2.68 percent, which is a new record low. This time last year, the number was at 3.01 percent.

With all mortgage rates meeting or breaking records again this week, now is the time to buy. If you’re looking to buy Chicago real estate in this buyer’s market, be sure to check out our site.

About The Author

Read All Stories By Mitch Levinson

Mitch Levinson is the author of “Internet Marketing: The Key to Increased New Home Sales” published by BuilderBooks. He is an Internet marketing expert with expertise in search engine optimization, website development, email marketing, social media and CRM consulting services. He is known for creating effective programs that can be tracked through analytics to prove effectiveness and ROI. Mitch is founder and president of MLC New Home Marketing and MLC FlatFee Realty, as well as managing partner of mRELEVANCE, LLC, a Marketing, Communication, Interactive agency with offices in Chicago and Atlanta. He currently leads the Chicago team. A Multi-Million Dollar Sales Producer who earned an MBA in Computer Information Systems and eCommerce, he brings a unique perspective and experience to the field of real estate communications. Mitch combines the two interests in order to help home builders and developers gain a competitive advantage through the Internet and technology. When he isn’t behind a computer, he enjoys participating in sports and coaching his kids’ teams. Mitch resides in Arlington Heights, Ill., a northwest suburb of Chicago, with his family, which includes two rambunctious labs. Visit my Google+ profile.

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