I was sent this Crain's Chicago Business story by our Rubloff executives this morning: Fannie-Freddie takeover sparks global stock rally
"The Bush administration announced Sunday it was seizing troubled mortgage giants Fannie Mae and Freddie Mac in a bid to help reverse a prolonged housing and credit crisis."
But here's the number you need to watch...and act on:
"Mark Zandi, chief economist at Moody's Economy.com predicted that 30-year mortgage rates, currently averaging 6.35 percent nationwide, could dip to close to 5.5 percent. That's because investors will be more willing to buy the debt issued by Fannie and Freddie — and at lower rates — since the federal government is now explicitly standing behind that debt."
With stable, and raising median prices, in many Chicago neighborhoods like Ravenswood, Lincoln Square, Lincoln Park, Lake View and North Center you have to buy in these moments where seller's get nervous about the market and interest rates drop.
As a Realtor, I'm always on the watch to take advantage of good prices and good interest rates to get my "move-up" house or to refinance.
If you are looking for your "move-up" house in Chicago, or may want to refinance your current loan please call me. Sometimes, you can time the market... historically fall and winter will average attractive asking prices and we could see a dip in mortgage interest rates. But you have to be educated, know what you want to buy and be ready to lock your rate.
I may looking to re-finance if the 5.5% becomes a reality and will have my mortgage guy at the ready to call me the second it does.
Lower interest rate - is it the solution? Or just a vicious circle? Wasn't the low interest rate (aimed to "kickstart" the economy) back in 2001 the root of all today's problems? I am West Toronto realtor and we are encountering similar problem in our market now (sales drop, frozen price...), but Bank of Canada is holding the rate. Good? Bad?
However, if you think it's good that this takeover will drop rates or not, I believe it's mainly big fraud, committed on taxpayers, who will be again saving some irresponsible businessmen...
Thanks for the over the top rant. Your generalizations of the mortgage crisis do not ad to the conversation. As well, no need to link your generic web site TWICE... we get that you want incoming traffic.
If you read the post, Chicago has very strong local markets. Real estate prices and demand are literally determined property to property, street to street. For instance, there has been a glut of development in the downtown Loop market, yet Helmet Jahn's 600 N Fairbanks downtown high-rise sold out in short order for big dollars. It depends on the building, architect, views etc... One building sells out, one has to turn rental.
The point of my post was economic news can swing interest rates high and low. If you want that move-up property (say a single family home), you need to be ready to act when rates swing low. Get it?
I have many condo owners who want/need a single family home for their growing families. The single family home market in North Side Chicago neighborhoods is expensive and competitive. Well priced homes go fast.
Wouldn't it be nice if their Realtor and mortgage broker made them aware of an almost full point interest rate drop in less than a week making the home more affordable?
The Moody analysis was right... the interest rate dropped to 5.67% on Monday and climbed back today to 6% (conventional 30 year fixed), and looks to drop again this week.
Gee, I'd like to lock my rate and find a house at 5.6% or so rather than the 6.5% of last week.
I would have appreciated a specific opinion or example than a generalized rant in a spam post.
How much more stable do you find the Chicago real estate market at the moment when compared to some of the other markets around the country? I like the fact that you point out that it IS situational. So often when a seller puts a home on the market there are a multitude of factors involved, such as relocation. For buyers this could provide a real spark, as long as they can secure financing.
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