Several of our banking and mortgage broker associates have been reporting FHA loans and "conventional" loans for those that qualify at 4.5%-5% APR.
A quick search on MarketWatch.com at local Chicago mortgage rates for a $400,000 (under Jumbo) loan with 20% down and 740+ credit score offers an average around 4.7%. FHA and other loan products allow much lower down payments with similar mortgage rates. Many people can afford $200,000 to $300,000 loans with lower down payments with today's rates and get more house and better location than in years past.
If you need a mortgage consultant referral, please feel free to email me and I'll pass on a few people that work with me and my clients. Additionally, you may be surprised at what a sub 5% mortgage rate will allow you to afford in a Chicago single family home or multi-unit building. Buying a house or multi-unit building in an established or up and coming Chicago Public School district whenever you can swing it (if your desire is to own a home) is my best bet advice in this current market.