This week, the average rate on a 30-year fixed-rate mortgage remained almost the same, hitting its lowest point in two years.

Real estate prices differ across neighborhoods, cities, and regions, as well as from one house to another depending on their features and size. Zillow reports that home values in Illinois range from $200,000 to $300,000, with a median value of $236,049.

Thanks to the federal rate reductions, the price of the moderately priced home decreased by $340, resulting in an increase of buying power by $70,000!

Analysts predict that home buyers will not start taking advantage of this increased buying power until the spring of 2025.

Chicago has pinpointed a deficit of approximately 120,000 homes and 240,000 rental units in affordable housing. In 2022, 97% of the 115,719 Illinois residents who relocated from the state chose destinations with lower taxes, especially reduced property taxes.

Experts predict that, on average, home prices will increase by approximately 2.6% nationwide next year. Despite varying opinions on the extent of this increase, there is a consensus among experts that home prices will continue to rise steadily next year, albeit at a more moderate pace. It is important to note that price fluctuations will always be influenced by individual local markets.

Refinancing applications have increased by 175% compared to last year. This uptick in the mortgage market comes after a sluggish summer for homebuying, as many prospective buyers opted to wait on the sidelines due to scarce inventory and historically high home prices.

According to Selma Hepp, chief economist at real estate data provider CoreLogic, "buyers are starting to feel more at ease with the rate."

As we inch closer to the presidential election, lets see what surprises the fed has in store for us.

Stay tune for more housing market updates.

Rod