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Why this time will be different

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Rates have dropped down to near historic lows. As of mid-April, the 30-year fixed was at 3.625 percent, the 20-year fixed was at 3.375 percent and the 15-year fixed was at 2.875 percent.

Back in 2012, rates were actually lower by a quarter percent across the board, but real estate values were also lower at that time as the whole country was still struggling to recover from the financial crisis of 2008.

In addition to seeing our fair share of refinancing, 2016 has brought many more borrowers to the market looking to sell their current home and upgrade to a bigger one.

Borrowers are feeling much more comfortable in 2016 than in 2012 because real estate values have recovered some since then and sellers have more equity now to put down on their next purchase.

The U.S. economy also is much more stable today than it was in 2012, as we are really the one large global economy that is holding its own.

First time homebuyers are feeling better about the economy and are also looking to take advantage of the low rates for their first purchase.

I work with about 20 realtors throughout the city and suburbs and they are all very happy with the activity that they are seeing in early 2016. Let’s just hope that it can last.

To contact me, call 773-557-1000 ext. 15, e-mail ron@ronmortgage.com or visit http://www.ronmortgage.com.

About Ron Ricchio

Renato (Ron) Ricchio is president of Chicagoland Home Mortgage. He grew up in Westchester and attended St. Joseph High School and DePaul University, taking a job as a loan officer in the mortgage industry soon after graduating with a bachelor's in finance in 1991. He started his own company in 2001, which he operates today. He has been ranked in the top 150 loan originators in 2010 and 2011 by Origination News. Ron is happily married with three beautiful children. A board member of San Francesco Di Paola Society and the founder of Ricchio Family Toy Drive for Lurie's Children's Hospital, he enjoys cooking and spending time with family and friends.

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