After a brutal winter that dumped snow across the Midwest, low current interest rates and the soon-to-expire government home buyer tax credits have the housing market in Illinois heating up. Illinois home sales increased 14% in January, the fifth consecutive year-over-year increase. The median home price rose .2%, the first year-over-year increase since September of 2007.
In the Chicago metro area, year-over-year home sales were up for the seventh month in a row, up 29% from January 2009. The median home price fell 5.4% from January 2009, but that is to be expected as the market continues to correct. Foreclosed properties also dragged down prices in the Chicago market, although this phenomena was mostly centered in Chicago and had a lesser effect on the rest of the state. As the number of distressed and foreclosed properties on the market is absorbed, analysts expect that prices could rebound.
As with most states, high unemployment continues to depress the market. There is some good news on this front, the most recent economic numbers showed that the national unemployment rate was stable at 9.7% in February, and some analysts expect the economy to add jobs in March. In a recent Bloomberg report, Brian Wesbury, chief economist from First Trust Portfolios said as many as 300,000 jobs could be added nationally this month.
Average interest rates in Illinois on a 30 year fixed conventional mortgage have lingered around 5.0% for the better part of the last year. Total Mortgage Services offers some of the best mortgage rates in Illinois:
| Loan Type | Rate | APR |
|---|---|---|
| Illinois 30 Year Fixed Conventional Mortgage | 4.5% | 4.710% |
| Illinois 15 Year Fixed Conventional Mortgage | 4.0% | 4.363% |
| Illinois 30 Year Fixed FHA Mortgage | 4.5% | 5.422% |
| Illinois 30 Year Fixed Jumbo Mortgage | 5.5% | 5.716% |
| Illinois 15 Year Fixed Jumbo Mortgage | 4.0% | 4.352% |
| Illinois 5/1 ARM Conforming Mortgage | 3.0% | 3.249% |
| Illinois 5/1 ARM Jumbo Mortgage | 3.625% | 3.303% |
* All rates shown are for 30 day rate locks. Longer locks available. The APR for conventional loan amounts is calculated using a loan amount of $417,000, 2 points, a $495 application fee, $500 loan processing fee, $715 underwriting fee and a $16 flood certification fee. The APR for jumbo loan amounts is calculated using a loan amount of $500,000, two points, a $495 application fee, $500 loan processing fee, $715 underwriting fee and a $16 flood certification fee. The APR for FHA loan amounts is calculated using a loan amount of $295,000, two points, a $495 application fee, $500 loan processing fee, $715 underwriting fee and a $16 flood certification fee. Some rates and fees may vary by state. All interest rates listed are for qualified applicants and are subject to mortgage approval. All rates are subject to change without notice. All rates assume a credit score of 740+ and are subject to change. Rates are quoted from Totalmortgage.com as of 1PM on Tuesday, March 9th, 2010.
With the pending expiration of the First Time Home Buyer Tax Credit and the Federal Reserve’s seeming inclination to raise interest rates before the end of the year (or sooner depending upon the economy) there is no better time than now to purchase or refinance a house in Illinois. Total Mortgage Services is licensed as both a lender and broker in Illinois, and is able to utilize its in-house underwriting and processing to bring you some of the best mortgage rates imaginable. Call 877-868-2503 to speak to one of our mortgage professionals today.
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