Existing home sales in Illinois rose for the sixth consecutive month as low home prices, current low Illinois mortgage rates and attractive distressed properties fueled housing demand.

Existing home and condo sales in the Chicago area were up 32% in February compared to the previous February. Nearly 40% of Chicago home sales last month were distressed properties. In the past, distressed properties were synonymous with dilapidated houses in blighted neighborhoods that badly needed repairs. In the current economic climate, however, there are many distressed properties in good condition that are ready to move into. These foreclosed homes sell at bargain prices and are depressing prices for homes that are not in distress and have to compete at low prices. Over the last six months, the median home price in the Chicago area fell 17%.

Foreclosure filings in Illinois increased 21% in February. The advantage of this is that before the recovery in the housing market can really take hold, the market will have to absorb the supply of distressed homes. This process will definitely cause difficulties for many sellers, but it is a necessary process.

What does all this mean for the average Illinois homebuyer? It sure is a buyer’s market right now. Prices are at low levels not seen in years. For those who qualify, current mortgage rates are very close to their all-time lows. The national average 30-year fixed mortgage rate was 4.96% last week. Total Mortgage offers mortgage rates in Illinois well below the national average:

type of loan

omitted

APR

Illinois 30-Year Fixed Conventional Mortgage

4.5%

4,710%

Illinois 15-Year Fixed Conventional Mortgage

4.0%

4.363%

Illinois 30-Year Fixed FHA Mortgage

4.5%

5.422%

Illinois 30-Year Fixed Jumbo Mortgage

5.5%

5.716%

Illinois 15-Year Fixed Jumbo Mortgage

4.0%

4.352%

Illinois 5/1 ARM Conforming Mortgage

3.0%

3.249%

Illinois Jumbo ARM 5/1 Mortgage

3.625%

3,303%

* All rates shown are for 30-day rate locks. Longer locks available. The APR for conventional loan amounts is calculated using a $417,000 loan amount, 2 points, a $495 application fee, a $500 loan processing fee, a $715 underwriting fee, and a $715 flood certification fee. $16. The APR for jumbo loan amounts is calculated using a $500,000 loan amount, two points, a $495 application fee, a $500 loan processing fee, a $715 underwriting fee, and a $715 flood certification fee. $16. The APR for FHA loan amounts is calculated using a loan amount of $295,000, two points, an application fee of $495, a loan processing fee of $500, an underwriting fee of $715, and an application fee of $715. $16 flood certification. Some fees and charges may vary by state. All interest rates listed are for qualified applicants and are subject to mortgage approval. All rates are subject to change without notice. All rates assume a 740+ credit score and are subject to change. Rates are quoted on Totalmortgage.com as of 12:00 pm on Tuesday, March 23, 2010.

If you’re looking for a home in Illinois, Total Mortgage will be proud to help you find the right mortgage for your situation. For over a decade, we’ve offered some of the best mortgage rates in the industry and exceptional customer service. We know the market inside and out and can use our in-house processing and underwriting to cut costs and save you money. Call us today at 877-868-2503 and find out how we can save you money today.