One of the reasons for this comment is that interest rates have come down steadily this past week and the 30 year conforming… ($417,000 or less) fixed rates are around 6.25%. This rate naturally depends on the buyer’s credit score and down payment. According to mortgage brokers, if a borrower is closing in 30 days or less, rates could be 6.125% or even 6%. These rates are quite good given the state of the banking industry.
In addition to the current rate situation, the United States Treasury is going to add a guarantee and liquidity to the banks that sell loans to Fannie and Freddie. This essentially means that money will be more readily available as soon and the cost of money is anticipated to be cheaper, thus making the interest rate to purchase a home less expensive.
With interest rates anticipated to come down and lower home prices, this unique combination appears to be an historic opportunity to purchase a home. Keep in mind, just as it is extremely difficult to pinpoint the bottom of the stock market, it is even more difficult to determine the bottom of the housing market in a local area such as Chicago.
The important thing to remember is that when buying Chicago real estate, it is all about location and the financial soundness of a building.