Chicago Real Estate News

 

Sept. 22, 2021

Special Report - The 2021 Suburban Inflection Point

For suburban home buyers and sellers, 2021 has been a wild ride so far. In this @ the market special report, @properties managing brokers Jim Barcelona and Tricia Roberto discuss Chicago's suburban home market - from the frenzied spring leading up to a market inflection point to the more balanced market foreseen in the fall. An Inflection Point is triggered when a significant event or combination of events surface that dramatically changes the trajectory of residential real estate… for better or worse.

 

Sept. 15, 2021

Red-Hot Housing Market Beings To Cool

 

There are fewer bidding wars and homes selling above asking price, report finds

 

Though the demand for homes remained strong across the United States in August, there are clear signs that the housing market is past its peak.

A report from residential brokerage Redfin found that pending sales across 400 metro areas were up 6% year over year in the four weeks that ended Sept. 5. Still, the 69,563 homes that went into contract represented a 9% decrease from the high point set in May 2021.

The decrease in pending sales is just one indicator of a softening in the competitiveness of the housing market: the number of homes with an accepted offer within two weeks on the market fell nine percentage points from the 2021 peak set in March, and the share of homes sold above asking price dropped to 50.1% from 55% in early July 2021, according to Redfin.

Redfin’s lead economist Taylor Marr said in a statement that he believes this cooling off in the housing market to be seasonally typical and that he expects demand for homes to remain strong throughout the fall.

“More homes were listed this summer, but they were quickly snatched up by homebuyers even as bidding wars have become more rare,”  Marr added.

Also noted as seasonally typical is the 16% decline in new home listings from the 2021 peak in June. Overall, however, new home listings are down 7% from a year ago and total active home listings are down 23% from 2020, Redfin said.

This limited inventory and strong demand is reflected in the 14% increase of the median home-sale price to $358,250, with the median asking price of newly listed homes at $353,500. Although this price is on-par with asking prices in April of this year, it is down 2% from the all-time high set in June 2021.

The Redfin report also found that on average nearly 5% of homes for sale each week during the month that ended Sept. 5 had a price drop, which is the highest level of price drops per week since October 2019. This may be a reflection in the median number of days homes that sold were on the market increasing to 19 days from an all-time low of 15 days in late June and early July 2021.

While the average sale-to-list price ratio remains above 100% at 101.4%, this is a decrease of 0.9 percentage points from its peak in June and July 2021. (It is still two percentage points higher than the 2020 high, according to Redfin.)  

While a housing market report by the National Association of Realtors found that existing-home sales grew 2% in July from the prior month, first-time homebuyers were disproportionately squeezed by tight inventory and rising prices.

If substantial relief for those homebuyers comes, it may not be until the fall at the earliest. Housing starts that month fell 7%, which experts attributed to slow labor growth and choked supply lines. Such economic indicators are likely to improve slowly and gradually in upcoming months.

By: Brooklee Han

Sept. 8, 2021

End of forbearance will not lead to foreclosures

 

Photo from DS News

 

 

With forbearance plans about to come to an end, many are concerned the housing market will experience a wave of foreclosures like what happened after the housing bubble 15 years ago. Here are four reasons why that won’t happen.

1. There are fewer homeowners in trouble this time

After the last housing crash, about 9.3 million households lost their home to a foreclosure, short sale, or because they simply gave it back to the bank.

As stay-at-home orders were issued early last year, the overwhelming fear was the pandemic would decimate the housing industry in a similar way. Many experts projected 30% of all mortgage holders would enter the forbearance program. Only 8.5% actually did, and that number is now down to 3.5%.

As of last Friday, the total number of mortgages still in forbearance stood at  1,863,000. That’s definitely a large number, but nowhere near 9.3 million.

2. Most of the 1.86M in forbearance have enough equity to sell their home

Of the 1.86 million homeowners currently in forbearance, 87% have at least 10% equity in their homes. The 10% equity number is important because it enables homeowners to sell their houses and pay the related expenses instead of facing the hit on their credit that a foreclosure or short sale would create.

The remaining 13% might not all have the option to sell, so if the entire 13% of the 1.86M homes went into foreclosure, that would total 241,800 mortgages. To give that number context, here are the annual foreclosure numbers of the three years leading up to the pandemic:

  • 2017: 314,220
  • 2018: 279,040
  • 2019: 277,520

The probable number of foreclosures coming out of the forbearance program is nowhere near the number of foreclosures coming out of the housing crash 15 years ago. The number does, however, draw a similar comparison to the three years prior to the pandemic.

3. The current market can absorb any listings coming to the market

When foreclosures hit the market in 2008, there was an excess supply of homes for sale. The situation is exactly the opposite today. In 2008, there was a 9-month supply of listings for sale. Today, that number stands at less than 3 months of inventory on the market.

As Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), explains when addressing potential foreclosures emerging from the forbearance program:

“Any foreclosure increases will likely be quickly absorbed by the market. It will not lead to any price declines.”

4. Those in power will do whatever is necessary to prevent a wave of foreclosures

Just last Friday, the White House released a fact sheet explaining how homeowners with government-backed mortgages will be given further options to enable them to keep their homes when exiting forbearance. Here are two examples mentioned in the release:

  • “For homeowners who can resume their pre-pandemic monthly mortgage payment and where agencies have the authority, agencies will continue requiring mortgage servicers to offer options that allow borrowers to move missed payments to the end of the mortgage at no additional cost to the borrower.”
  • “The new steps the Department of Housing and Urban Development (HUD), Department of Agriculture (USDA), and Department of Veterans Affairs (VA) are announcing will aim to provide homeowners with a roughly 25% reduction in borrowers’ monthly principal and interest (P&I) payments to ensure they can afford to remain in their homes and build equity long-term. This brings options for homeowners with mortgages backed by HUD, USDA, and VA closer in alignment with options for homeowners with mortgages backed by Fannie Mae and Freddie Mac.”

When evaluating the four reasons above, it’s clear there won’t be a flood of foreclosures coming to the market as the forbearance program winds down.

Bottom Line

As Ivy Zelman, founder of the major housing market analytical firm Zelman & Associatesnotes“The likelihood of us having a foreclosure crisis again is about zero percent.”

-KCM

Sept. 1, 2021

Market forecast for the remainder of 2021, according to realtors

 

 

It’s no secret that the COVID-19 pandemic has turned the real estate market into a wild domain. If you’re looking to buy or sell a home, you’re likely eager to know how long this will last.

In June 2021, home prices across the U.S. surged 24.8% year-over-year — to a median sale price of $386,888 — according to Redfin. During the same time period, the number of homes sold increased 20.6% and the number of homes for sale tumbled 39.6%. 

Mortgage rates have reached record lows during the pandemic and have once again been on the decline since late June. Specifically, the 30-year fixed-rate mortgage was 3.02% on June 24, dropping to 2.78% on July 22.

While an economic upturn was predicted, the Delta variant could send that to a screeching halt. On July 27, the Centers for Disease Control and Prevention reinstated their recommendation that fully vaccinated people in areas of substantial or high transmission wear a mask indoors.

Only time will tell if additional COVID-19 restrictions will return, and how this could impact the housing market. However, several real estate agents and experts have weighed in with their opinion of what the market will look like for the rest of the year.

“The real estate market in the first half of 2021 bore the surging demand from a millennial reshuffling,” said Greg Toschi, CEO of Poplar Homes, a California-based real estate technology and services company. “Millions of older millennials are creating families and were planning to buy a home in 2022 to 2025.”

However, he said a lot people decided to make the move earlier, instead of following their original homebuying timeline.

“We saw this in the rental market with a 100% increase in the number of people moving to buy a home or change jobs,” he said. “All that demand was pulled forward and unleashed like a sling shot — alas, prices skyrocketed.”

Toschi said this also happened during what is typically the hottest season for homebuying, which contributed to the surge. Heading into the fall months, activity usually slows and prices tend to drop. Right now, he said many homebuyers are opting to wait to make a purchase because prices are too high.

“Inventory numbers are also climbing,” he said. “But prices probably won’t go down much as normal.”

While the enthusiasm of those who have been shopping for a new home for awhile might fade, he noted there are still tons of new buyers entering the market.

“If the COVID Delta variant leads to further lockdowns and quarantines, the real estate market will probably behave in a similar way as the last lockdown,” he said. “Though I’m not sure it will deter buyers who built up a lot of motivation during quarantine.”

Jason Gelios, a realtor in Southeast Michigan, said he’s starting to notice a bit of a difference in the market.

“There is a slight change happening in the current housing market where buyer demand has actually decreased,” he said. “In my market of Southeast Michigan, we are still seeing more buyers than homes available, however we aren’t seeing lines of people waiting to view a home.”

Despite the shift, Gelios predicted the real estate surge isn’t stopping anytime soon.

“We will see a slight increase in mortgage rates, probably 3.5% by mid-fall, and a slight increase in housing inventory as we approach the later part of 2021,” he said. “We don’t anticipate a full switch in the housing market until sometime in 2022 where it would be considered favoring buyers.”

Betsy Ronel, a licensed real estate salesperson with Compass in Westchester County, New York, said she thinks the market in her local area will soften slightly until the winter months, because buyers are discouraged.

“Then, depending on this Delta variant and mask laws, the market might quiet down until the spring,” she said. “I think either way we will have a stronger spring market, but we won’t be back to a more balanced market for some time.”

Ronel said she believes the market will be in recovery mode for the foreseeable future.

“It’s a national issue, so things are stalled everywhere in some way,” she said.

Of course, not every U.S. city has experienced a chaotic real estate market during the pandemic.

“While many suburban markets have enjoyed significant price appreciation due to COVID, some of the best cities in the country have been discounted — New York being one of them,” said Daren Herzberg, a licensed associate real estate broker and co-founder of The Babst + Herzberg Team at Compass in New York. “Now is the time to buy.”

He said a significant amount of people are returning to New York City and taking advantage of the double discounts rarely enjoyed on real estate, which is bringing the Big Apple back to life at record pace.

“On top of that, outdoor dining, bike lanes and a brand new and better selection of retail will make the best city in America feel like the Roaring ’20s,” he said. “And on top of that, historically low interest rates and a vibrant economy should make a move into real estate compelling in any market — in spite of recent price increases.”

While the real estate market has largely been hot across the U.S., local market conditions vary and will continue to do so. If you’re planning to buy or sell a property this year, check with a licensed real estate agent in your area to learn more about regional trends.

By: Laura Woods - gobankingrates.com

 

 

Aug. 25, 2021

Fewer first time home buyers are competing

 

 

The inventory of unsold homes rose by 7.3% to 1.32 million from June to July

 

Existing-home sales grew by 2.0% in July from the month prior, a report published by the National Association of Realtors on Monday found. But first-time homebuyers are still getting squeezed.

Completed sales transactions for single-family homes, townhomes, condominiums and co-ops, represented a seasonally adjusted annual rate of just under 6 million (5.99 million) in July, according to NAR. A year ago, the annual rate was 5.90 million, so sales grew year-over-year by 1.5%.

A notable development: After a year of extremely tight housing inventory, the housing market is showing signs of finally adding housing stock. The inventory of unsold homes rose by 7.3% to 1.32 million from June to July, the report found. However, even with the availability of more homes on the market, inventory for homebuyers is down 12% from 2020 (1.5 million).

Lawrence Yun, chief economist at NAR, said in a statement that as inventory starts to tick up, the intensity of multiple offers will lessen, leading to a more balanced housing market for homebuyers.

“Much of the home sales growth is still occurring in the upper-end markets, while the mid-to lower-tier areas aren’t seeing as much growth because there are still too few starter homes available,” Yun added.

Reacting to the report, Matthew Speakman, an economist at Zillow, noted that demand continues to be firm and is “boosted, in part, by gains in inventory that are starting to offer buyers meaningfully more choice.”

Speakman said that the increase in inventory is being driven by “sellers [coming] out of the woodwork, providing home shoppers with more options, and likely easing some of the upward pressure on home prices in coming months.”

Meanwhile, the median existing-home sales price rose to $359,900 in July, up from $305,600 last year, marking a 17.8% increase, the report said.

Yun remarked that home prices are unlikely to drop in the coming months, though there is a chance that “they will level off as inventory continues to gradually improve.”

He also said that the elevated cost of housing is having an impact on the rental market, with prospective homebuyers who are priced out of the current purchase market opting to rent, thus causing rental rates to jump.

Per the report, first-time homebuyers accounted for 30% of sales in July, dipping slightly from 31% in June and down from 34% year-over-year, NAR said.

Joel Kan, associate vice president of economic and industry forecasting at the Mortgage Bankers Association, said that first-time homebuyers have been “particularly sensitive to these elevated prices.”

“[First-time homebuyers] are also competing with an elevated share of cash buyers – up to 23% of all buyers compared to 16% a year ago,” Kan said.

Also, due in part to the foreclosure moratorium still in place in July, distressed sales, encompassing foreclosures and short sales, represented less than 1% of sales, equal to the percentage seen in June and equal to July 2020, NAR said.

By: HW - Maria Volkova
Aug. 18, 2021

Refinance applications fall as mortgage rates rise

 

FHA and VA loans saw an increase in applications

 

Mortgage applications decreased 3.9% for the week ending Aug. 13 compared to the week prior and fewer borrowers opted to refinance, according to the latest report from the Mortgage Bankers Association.

Ten-year Treasury yields rose overall but tapered off slightly at the end of last week, and 30-year mortgage rates tracked by the MBA reached 3.06%. That deterred some borrowers from refinancing and contributed to an overall slowdown in mortgage applications.

“Mortgage rates were at their highest levels in around a month, with the 30-year fixed rate increasing above 3% to 3.06%. Mortgage rates followed an overall increase in Treasury yields last week, which started higher from the strong July jobs report before slowing because of weaker consumer sentiment and concerns about rising COVID-19 cases,” said Joel Kan, MBA’s associate vice president of economic and industry forecasting.

“The increase in mortgage rates caused a 5% decrease in refinancing, driven by a 7% drop in conventional refinance applications. Even though rates are 7 basis points lower than the same week a year ago, the refinance index is around 8% lower,” said Kan. “The eligible pool of homeowners who stand to benefit from a refinance is smaller now.”

The refinance share of mortgage activity decreased to 67.3% of total applications from 68.0% the previous week.

 

The share of applications for conventional purchase loans decreased from the week prior, while Federal Housing Administration and Veterans’ Affairs loans, typically popular with first-time homebuyers, gained a larger share.

FHA applications rose to 9.4% from 8.9% the week prior, while the VA share of total applications increased to 10.3% from 9.6% the week prior. The share of applications for United States Department of Agriculture loans decreased to 0.4% from 0.5% the week prior. The adjustable-rate mortgage share of activity stood unchanged for the week at 3.2% of total applications.

And although average loan sizes continued to decrease, they still remain at historic highs. The average loan size for purchases was $339,200, while for refinances the average size was $393,700.

“Despite a second-straight weekly decrease, average loan sizes remain close to record highs,” Kan said. “This is a continuing sign that sales prices are still elevated, driven by stiff competition leading to accelerating home-price growth.”

Here is a more detailed breakdown of this week’s mortgage applications data:

  • The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($548,250 or less) increased to 3.06% from 2.9%.
  • The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $548,250) increased to 3.19% from 3.15%.
  • The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 3.15% from 3.06%.
  • The average contract interest rate for 15-year fixed-rate mortgages increased to 2.41% from 2.35%.
  • The average contract interest rate for 5/1 ARMs increased to 2.90% from 2.52%.

By 

Aug. 11, 2021

Delta variant drops mortgage rates

COVID-19 Delta variant concerns and lower 10-year Treasury yields keeping rates low - Through August 5th.

 

UPDATE:

MBA (Mortgage Bankers Association) 8/11/2021

Mortgage applications increased 2.8% for the week ending Aug. 6, and there are signs that at least some first-time homebuyers are finding opportunities despite high home prices.

Ten-year Treasury yields rose slightly at the end of last week after the July jobs report exceeded expectations. That was enough to drive mortgage rates up slightly to 2.99%. Rates have struggled to surpass 3% for most of this year.

“Mortgage applications rebounded last week, including an increase in purchase applications for the first time in nearly a month,” said Joel Kan, MBA’s associate vice president of economic and industry forecasting. “Rates slightly rose but remained below 3%, driven by an end-of-week increase in the 10-year Treasury yield following the positive July jobs report.”

Last Friday, the U.S. Labor Department announced 943,000 new jobs were added in July, exceeding the forecast of 865,000. It was the highest month-to-month growth since August of 2020.

With low rates and heightened concerns surrounding the Delta variant, many homeowners are electing to refinance. For the first time since February, refinance activity reached half of all mortgage originations, according to the latest report from Black Knight.

 

The average 30-year fixed-rate mortgage slipped back down to 2.77% for the week ending August 5, according to mortgage rates data released Thursday by Freddie Mac's PMMS.

The week prior, mortgage rates had rebounded slightly to 2.80%. According to Sam Khater, chief economist at Freddie Mac, concerns over the COVID-19 Delta variant, along with lower 10-year Treasury yields, have resulted in lower rates.

“With global market uncertainty surrounding the Delta variant of COVID-19, we saw 10-year Treasury yields drift lower and consequently mortgage rates followed suit,” said Khater. “The 30-year fixed-rate mortgage dipped back to where it stood at the beginning of 2021, and the 15-year fixed remained at its historic low. This bodes well for those still looking to refinance, renovate or even purchase a new home.”

A year ago at this time, the 30-year fixed-rate mortgage averaged 2.88%. The 15-year fixed-rate mortgage stood unchanged from the week prior, at 2.10%.

Mortgage rates have stayed stubbornly low, barely exceeding 3%, defying predictions that 2021 would bring a return to higher levels. Economists and investors are waiting for any indication that the Federal Reserve may begin tapering its asset purchases.

 

But the central bank has not indicated that it will change its $120 billion in monthly purchases of U.S. Treasury bonds and mortgage backed securities, at least until substantial further progress is made in the labor market.

Price fluctuations in some goods, such as lumber, have fueled concerns that inflation will be more widespread. Federal Reserve Chair Jerome Powell has called the price increases transitory, noting that they are limited to certain segments of the economy.

In a HousingWire Daily podcast, Ajita Atreya, a senior economist at Freddie Mac, said she agreed with that assessment.

“We’re in the camp that believes the inflationary pressure that we’re seeing now is transitory, but definitely something that we should be watching out for, because that’s going to have a major implication in the housing market, and especially if the Fed decides to correct it,” said Atreya.

Despite the Fed’s continued accommodative stance, the housing market is showing signs of cooling.

Mortgage applications tracked by the Mortgage Bankers Association fell 1.7% in the week ending July 30, in spite of the 30-year fixed rate falling to its lowest level in roughly six months. 

Just a week earlier, applications had increased 5.7%, buoyed by descending mortgage rates.

Mike Fratantoni, MBA’s senior vice president and chief economist, said the decline in mortgage applications can be attributed to the market’s assessment of the latest COVID-19 delta variant.

“Thirty-year mortgage rates dropped below 3% in our survey for the first time since February, presenting an opportunity for many homeowners who have not yet refinanced to lower their rate and payments,” Fratantoni said. “Refinance application volume slightly decreased following an 11% jump last week, and purchase application volume decreased again, reflecting the ongoing lack of inventory that continues to drive rapid home-price appreciation across the country.”

But the low rates made little difference in the purchase market, as home prices continue to rise. The seasonally adjusted Purchase Index decreased 2 percent from one week earlier, the MBA reported.

Home prices increased across the board in May, leaping 16.6% annually in the latest S&P CoreLogic Case-Shiller National Home Price Index report, marking the 12th consecutive month of accelerating prices.

“A month ago, I described April’s performance as ‘truly extraordinary,’ and this month I find myself running out of superlatives,” said Craig Lazzara, managing director and global head of index investment strategy at S&P DJI. “We have previously suggested that the strength in the U.S. housing market is being driven in part by reaction to the COVID pandemic, as potential buyers move from urban apartments to suburban homes. May’s data continue to be consistent with this hypothesis.”

 

Aug. 4, 2021

3 charts show this is not a housing bubble

 

 

1. The housing market isn’t driven by risky mortgage loans.

Back in 2006, nearly everyone could qualify for a loan. The Mortgage Credit Availability Index (MCAI) from the Mortgage Bankers’ Association is an indicator of the availability of mortgage money. The higher the index, the easier it is to obtain a mortgage. The MCAI more than doubled from 2004 (378) to 2006 (869). Today, the index stands at 130. As an example of the difference between today and 2006, let’s look at the volume of mortgages that originated when a buyer had less than a 620 credit score.3 Charts That Show This Isn’t a Housing Bubble | MyKCMDr. Frank Nothaft, Chief Economist for CoreLogic, reiterates this point:

“There are marked differences in today’s run up in prices compared to 2005, which was a bubble fueled by risky loans and lenient underwriting. Today, loans with high-risk features are absent and mortgage underwriting is prudent.”

2. Homeowners aren’t using their homes as ATMs this time.

During the housing bubble, as prices skyrocketed, people were refinancing their homes and pulling out large sums of cash. As prices began to fall, that caused many to spiral into a negative equity situation (where their mortgage was higher than the value of the house).

Today, homeowners are letting their equity build. Tappable equity is the amount available for homeowners to access before hitting a maximum 80% combined loan-to-value ratio (thus still leaving them with at least 20% equity). In 2006, that number was $4.6 billion. Today, that number stands at over $8 billion.

Yet, the percentage of cash-out refinances (where the homeowner takes out at least 5% more than their original mortgage amount) is half of what it was in 2006.3 Charts That Show This Isn’t a Housing Bubble | MyKCM

3. This time, it’s simply a matter of supply and demand.

FOMO (the Fear Of Missing Out) dominated the housing market leading up to the 2006 housing bubble and drove up buyer demand. Back then, housing supply more than kept up as many homeowners put their houses on the market, as evidenced by the over seven months’ supply of existing housing inventory available for sale in 2006. Today, that number is barely two months.

Builders also overbuilt during the bubble but pulled back significantly over the next decade. Sam Khater, VP and Chief Economist, Economic & Housing Research at Freddie Mac, explains that pullback is the major factor in the lack of available inventory today:

“The main driver of the housing shortfall has been the long-term decline in the construction of single-family homes.”

Here’s a chart that quantifies Khater’s remarks:3 Charts That Show This Isn’t a Housing Bubble | MyKCMToday, there are simply not enough homes to keep up with current demand.

Bottom Line

This market is nothing like the run-up to 2006. Bill McBride, the author of the prestigious Calculated Risk blog, predicted the last housing bubble and crash. This is what he has to say about today’s housing market:

“It’s not clear at all to me that things are going to slow down significantly in the near future. In 2005, I had a strong sense that the hot market would turn and that, when it turned, things would get very ugly. Today, I don’t have that sense at all, because all of the fundamentals are there. Demand will be high for a while because Millennials need houses. Prices will keep rising for a while because inventory is so low.”

July 28, 2021

Mortgage applications jump rates plummet

Home prices, however, are depressing the purchase market

 

Mortgage applications increased 5.7% for the week ending July 23, mostly on the back of fast-falling mortgage rates.

The 10-year Treasury yield went into free fall last week, as investors grew concerned about the rise in COVID-19 variant cases and the potential economic fallout, according to Joel Kan, MBA’s associate vice president of economic and industry forecasting.

That led to the 30-year fixed mortgage rate declining to its lowest level since February of this year, according to the latest report from the Mortgage Bankers Association. And the 15-year rate fell to a record low last seen in 1990. Those ultra-low rates naturally resulted in a sharp uptick in refinancing activity.

“With over 95% of refinance applications for fixed rate mortgages, borrowers are looking to secure a lower rate for the life of their loan,” Kan said Wednesday.

Kan noted that the low rates didn’t spur the purchase market, which hasn’t been able to overcome record home prices. The purchase index decreased for the second week in a row to its lowest level since May 2020. It’s now fallen on an annual basis for the past three months.

Kan noted that the Federal Housing Finance Agency reported that May home prices were 18% higher than a year ago.

“That continues a seven-month trend of unprecedented home-price growth,” he said. “Potential buyers continue to be put off by extremely high home prices and increased competition.”

The refinance share of activity of total mortgage applications increased to 67.2% from 64.9% the previous week. On an unadjusted basis, the market composite index increased 6% compared with the previous week. The seasonally adjusted purchase index decreased as well, down 2% from the previous week.

The FHA share of total mortgage applications decreased to 9.1% from 9.6% the week prior, and the VA share of total mortgage applications decreased to 9.8% from 10.5%.

Here is a more detailed breakdown of this week’s mortgage applications data:

  • The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($548,250 or less) decreased to 3.01% from 3.11%
  • The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $548,250) decreased to 3.11% from 3.13%
  • The average contract interest rate for 30-year fixed-rate mortgages decreased to 3.03% from 3.08%
  • The average contract interest rate for 15-year fixed-rate mortgages decreased to 2.36%, the lowest level in the history of the survey, from 2.46%
  • The average contract interest rate for 5/1 ARMs increased to 2.81% from 2.74%, with points unchanged at 0.30 (including the origination fee) for 80% LTV loans

By: Tim Glaze H.W. 

July 21, 2021

@The Market: 2021 Mid-Year Outlook

 

 

This quarter on @ The Market, the pandemic is receding, restaurants and ballparks are filling up, and the housing market is running hot. @properties always says “love where you live” and it sure feels like the summer of love in Chicago for many home buyers and sellers. Amid this backdrop, @properties co-CEOs Thad Wong and Mike Golden address a number of topics including bubble rumors, “pay anything” home buyers and the slow return to supply/demand balance.