Aug 21, 2024
If you've been eyeing the Chicago suburbs as the perfect place to put down roots, 2024 might just be the year to make your move! With interest rates trending lower and a wealth of opportunities to build your dream home, now is the time to explore the possibilities with Overstreet Builders. Let’s dive into why this year’s interest rates make partnering with one of the top home builders in Illinois a smart choice for your future.
What the 2024 Interest Rates Shift Means for Homebuyers
Remember 2023? When interest rates nearly hit 8%? It made home buying feel like trying to reach the moon without a rocketship. Thankfully, those days are behind us.
According to Freddie Mac, today’s 30-year fixed-rate mortgage hovers around 6.5% nationally — over one and a half percent lower than this time last year!
That drop may not sound like much, but in the world of mortgages, it's like upgrading from coach to first classwithoutthe hefty price tag.
For example, let’s say you’re planning to build a $500,000 home. With a 20% down payment, you’d finance $400,000. At an 8% interest rate, your monthly payment for principal and interest alone would be about $2,935.
But with today’s lower rate of 6.5%, that payment drops to around $2,528. That’s a savings of over $400 a month or nearly $5,000 a year! And that’s money you could put toward upgrades, savings, or enjoying life in your new home.
Note: This estimate includes only principal and interest. Property taxes and homeowner’s insurance are additional costs that will vary based on location and other factors.
But wait, there’s more good news! The Federal Reserve is showing signs of confidence that they’ve tamed inflation, which means they’re considering cutting the benchmark interest rate soon. If that happens, mortgage rates could dip even further, making it aneven better time to consider new home construction in our Signature Neighborhoods!
What to Expect in The Current Illinois Market
If you’re considering building a home in the Chicago suburbs, it’s important to understand the current market dynamics.
Here’s a quick overview:
- Rising Home Prices:Even though higher costs does necessarily sound like a good thing, it can indicate long-term home value in your new investment.
- Fewer Homes on the Market: Home to sell? Fewer homes mean less competition for your existing home when putting it on the market - it will likely sell faster and for more than in a super active market.
- Competitive Rates:Current rates in Illinois are 6.60% for a 30-year fixed mortgage and 5.94% for a 15-year fixed mortgage—better than the highs of 2023.
There’s a good chance these rates could decrease further as the year progresses, too. Some lenders offer rate locks and the ability to take advantage of lower interest rates when it comes time to close, putting you in the best position possible. Plus, programs like those offered by the Illinois Housing Development Authority (IHDA) can make homeownership more accessible, particularly for first-time buyers.
The Smart Investment for 2024 and Beyond
Building a home is one of the most significant investments you'll ever make, and at Overstreet Builders, we don’ttake that lightly.
With a rich legacy spanning over six decades, we excel in creating custom, luxury homes tailored to your vision in the Chicago suburbs. Our commitment to exceptional craftsmanship and unwavering integrity ensures that we guide you through the entire process - from the first blueprint to the finishing touches - delivering a home that reflects your lifestyle and is built to last.
But beyond building beautiful homes, we also support your financing journey. We can connect you with preferred lenders who offer competitive rates and a seamless home-buying process so that you make the most of 2024’s favorable interest rates.
Whether you're ready to build or just exploring, contact us today to see how Overstreet Builders can make your dream home a reality with 2024's best rates and expert guidance!