They were at it again last week—the party-poopers who wanted to quibble about what newspapers and broadcast media were proclaiming: a shattering of the record lows in mortgage interest rates. For Chicago real estate followers, the argument missed what is most important: the bottom line that the rates being offered continue to create a heady environment for home buyers and sellers.
“Don’t Believe This Week’s Mortgage Rate News” headlined the Mortgage News Daily, which once again picked apart the underlying figures published by Freddy Mac. The government-sponsored entity had reported a mind-bending average rate on the 30-year mortgage of 2.80%! That, wrote Freddy, constituted “another record low…amid the release of new housing data reinforcing how the Federal Reserve’s move to make home loans more affordable is spurring growth in sales, prices, and construction nationwide.”
Unlike the MND, The Washington Post had no qualms about echoing Freddy’s claims. It quoted Realtor.com’s senior economist, who admitted he had expected mortgage rates to rise last week. He wasn’t completely surprised because investors who were “looking for someplace to put their money” were targeting mortgage bonds. The result was “lower yields and lower interest rates.”
The MND grudgingly admitted that news outlets couldn’t be expected to rain on the good news parade. “After all,” it snarled, “who are they to question the mighty Freddie Mac?” MND’s problem was with a lag in the days included in their numbers. And actually, as far as Chicago real estate followers are concerned, even the MND had to admit something far more important: the difference was “not by enough that any consumer would notice it on a mortgage rate quote…”
For Chicago real estate purposes, the financial green light constituted by historically low rates continues for area home buyers and sellers. Which also continues to be a great reason to give me a call!