Many potential condo buyers have said they are waiting for prices to hit bottom before they want to purchase. Perhaps it’s not home prices we should focus on… but home loan rates instead.
Mortgage rates have reached record lows, dropping well below 5 percent last week. Condo buyers looking to purchase now can “lock in” at these historically low rates, effectively lowering monthly payments and overall costs over the life of the loan.
Mortgage Bankers Association (MBA) reported the average for 30-year fixed-rate mortgages dropped to 4.63% the week of March 23rd. Other indices have the rate hovering between 4.75 and 5 percent, well below what they were a year ago. The significant dip in home loan interest rates followed the Federal Reserve’s promise to spend $300 billion buying Treasury bonds, announced March 18.
Buyers have already started to take advantage of these beneficial purchasing conditions as existing home sales jumped 5 percent in February from January, according to the National Association of Realtors. Chicago condo shoppers can take advantage of extremely low interest rates as well. Plus, you have an enormous inventory of units to select from to find just what you want in a home. From downtown to the suburbs, the number of condos, townhouses, lofts, duplexes and other attached residences is in high supply. Real estate agents agree that the current market setting leads to less compromise on the buyer’s part because there are so many options available.
If you are in the process of looking for condos, or are thinking about beginning your home search, it is a good time to talk with your agent or lender about getting locked in to this record-setting mortgage rate. Rates vary daily and there are some signs of the average inching back up, so speak with a professional to find out how you can secure your future mortgage rate today.
