Mortgage rates have hit their lowest levels in five months, as the real estate market in Chicago and around the nation feels the effects of a major slump in sales.
According to Freddie Mac, a 30-year, fixed rate mortgage now stands at 6.26 percent. It is the lowest rate that buyers have seen since the week of May 17, when the rate was at 6.21 percent.
This may be of little help in the short term in Chicago, where sales of single-family homes continue to drop. According to the Chicago Association of Realtors, the number of Chicago Homes sold during the third quarter dropped to 1,956 citywide, over 20 percent less than the same period last year and the lowest total since 1992.
Sales of single family homes in the suburbs fared even worse. The total number of homes sold during the third quarter dropped by almost 25 percent from the same period last year. A total of 12,728 homes were sold in the Chicago suburbs during the third quarter, the lowest total for the quarter since 1991.
Real estate professionals and homeowners can only hope that lower mortgage rates spur demand for single family homes around Chicago.
Technorati Tags: Chicago Real Estate News, Chicago Mortgage Rates, Chicago Homes
