Is the mortgage market just right?

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Remember the childhood story of Goldilocks and the Three Bears, where this bed is too big and this bed is too small but this bed is just right?

Can the market be at a point where everything is just right? Mortgage rates as of the day I am writing this article are below 4 percent for a 30-year fixed. Real estate prices are moving up and oil and gas prices are at multi-year lows.

And while the economy isn’t speeding along, we have seen unemployment come down without being accompanied by wage inflation. Inflation overall has been below the target rate for the Federal Reserve, which has left a lot of people (even the Fed itself) wondering when should rates go up.

World economies (namely Europe and China) are slowing down, which is helping our dollar improve and the United States is looking more and more like we are the anchor economy.

Having rates below 4 percent for a 30-year fixed fosters a productive environment for new and existing home sales. These home sales will continue to heat up our lukewarm economy. When we see rates move above 4 percent and into the mid-4s the real estate market will begin to take a step back. Refinancing has boomed again, which has also help put some money back into the pockets of Americans.

Hopefully we will see rate lower for a bit longer, but all good things must come to an end. The Fed keeps saying that they will begin raising rates this year but no one really knows when. All eyes are on the economy and if we start seeing some further improvement.

This is a great time to buy or refinance, so talk to you mortgage and real estate professional now if you are considering buying, selling or refinancing.

To contact me, call 773-557-1000 ext. 15, e-mail or visit


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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