2018’s Housing Market and the Economy in Pekin, Illinois

2018’s Housing Market and the Economy in Pekin, Illinois

2018’s Housing Market and the Economy - Local Records Office

PEKIN, IL – While the economy’s growing, companies are hiring and with the 401(k)s are larger than the previous year, you may be wondering, what is holding people back from buying a new home in Pekin, Illinois? As there are many factors as to why real estate took a plunge in sales, from the weather to worker shortages, building materials are pricier, prices of homes are much higher, the lack of space, higher mortgage rates, and the new tax law changes, the Local Records Office recognizes homebuyers may be asking themselves is this just a blip in the economy?

In the United States overall, the percent change of new privately owned houses sold and for sale has decreased 0.6% from February 2018 compared to January 2018, and the percent change has increased 0.5% from February 2018 compared to last year, February 2017. In the Northeast, the percent change has increased 19.4% from February 2018 compared to January 2018 and increased 8.8% February 2018 compared to last year, February 2017. However, in the Midwest, the rate of the houses being sold from February 2018 to January 2018 declined 3.7% and has also decreased 8.1% from February 2018 to February 2017, according to the census.gov new resale’s report.

And sales of new single-family houses in February 2018 in the U.S. were at a seasonally adjusted annual rate of 618,000. This is at 0.6 percent (±13.3 percent)* below the revised January rate of 622,000 but 0.5 percent (±16.6 percent)* above the February 2017 estimate of 615,000.

The median sales prices of new homes that were sold in February 2018 were at $326,800 in the U.S. and the average sales price at $376,700.

The seasonally adjusted estimate of new homes for sale at the end of February was $305,000. This also represents the supply of 5.9 months of the current sales rate and the March report is scheduled to release on April 24, 2018.

Pekin, IL Real Estate Market News

The Market Composite Index, (a measure of mortgage loan application volume), increased 4.8% on a seasonally adjusted basis comparative to one week earlier. On an unadjusted basis, the Index increased 5 percent compared with the previous week. The Refinance Index increased 7 percent from the previous week. The seasonally adjusted Purchase Index increased 3 percent from one week earlier. The unadjusted Purchase Index increased 4 percent compared with the previous week and was 8 percent higher than the same week one year ago.

-Refinance share of mortgage activity increased to 39.4% of total applications from 38.5% the previous week. And the adjustable-rate mortgage (ARM) share of activity remained the same of 7.0% of total applications.

-The FHA share of total applications declined 9.9% from 10.3% from the week prior. The VA share –total applications declined 10.3% from 10.7% the week prior. The USDA share –total applications had remained unchanged at 0.8% from the week prior.

-The average contract interest rate for a 30-year fixed-rate mortgages with the conforming loan balances of $453,100 or less has increased to 4.69% from 4.68%, with points decreasing to 0.43 from 0.46, including the origination fee for an 80% loan-to-value ratio (LTV) loans, with the effective rate decreased at the end of March 2018.

-The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances any greater than $453,100 has increased to 4.60% from 4.55%, with points decreasing to 0.36 from 0.37, including the origination fee for 80% of the LTV loans. The effective rate increased from the end of March as well in 2018.

-The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 4.75% from 4.6%, with points decreasing to 0.56 from 0.81, including the origination fee for 80% LTV loans, with the effective rate decreased from last week of March 2018.

-The average contract interest rate for the 15-year fixed-rate mortgages has decreased to 4.09% from 4.12%, with points decreasing to 0.46 from 0.51, including the origination fee for the 80% LTV loans. And the effective rate decreased from the last week of March 2018.

-The average contract interest rate for 5/1 ARMs has increased to 3.92% from 3.83%, with points decreasing to 0.46 from 0.68, including the origination fee for the 80% LTV loans. The effective rate increased from the last week of March.

According to last month’s report, in February 2018:

-The average rate you will pay for a 30-year fixed mortgage is 4.33%.

-The average 15-year fixed mortgage rate is 3.76%.