ARAMCO Report - The Mother of ALL Mortgage Blogs!

Reverse mortgages now a part of the ‘mainstream’

Posted by The Aramco Group on Sat, Sep 22, 2018 @ 10:09 AM

Once thought to be an exotic loan product for the cash-strapped, reverse mortgages have evolved into not only a common and powerful financial tool but are now being factored into seniors’ retirement plans. Home Equity Conversion Mortgages or HECMs are exclusive to those 62 or older and can help fund longevity.

With the federal government regulating the industry, reverse mortgages are safe. In fact, nearly 90 percent of reverse mortgage loans in the U.S. are insured by the Federal Housing Administration. Among the primary benefits borrowers will find is the elimination of their monthly mortgage payments. The proceeds from a reverse mortgage can be made available through a lump sum payout, line of credit or through monthly installments.

As senior home equity reached $6.8 trillion this year, it is no small wonder that more retirees are looking to a reverse mortgage.

Today, convventional conforming no-point 30-year fixed mortgage rates are averaging 4.625 percent, 15-year rates are near 4.125 percent and the 5-year ARM is averaging 4.125 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.

Americans are putting bigger down payments on homes

Posted by The Aramco Group on Fri, Sep 21, 2018 @ 12:09 PM

The median down payment buyers are forking over to buy a home remains near record highs according to a new report. Down payments for single-family homes and condos purchased with financing in the third quarter reached a median of $19,900 according to ATTOM Data Solutions.

The report also gives insight into how many homebuyers are utilizing low down payment loans. The median down payment equates to 7.6 percent of the median sales price for a financed home in the third quarter, well below the requisite 20 percent down needed for many conventional loans.

California’s competitive and pricey housing market requires a heftier amount. In San Diego the median down payment was $90,000.

Today, conforming no-point 30-year fixed mortgage rates are averaging 4.625 percent, 15-year rates are near 4.125 percent and the 5-year ARM is averaging 4.125 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.

Homebuilders defiant in the face of tariffs

Posted by The Aramco Group on Thu, Sep 20, 2018 @ 11:09 AM

Despite the impact of higher costs for construction materials, homebuilders remained confident in September in the future of their industry. The National Association of Home Builders/Wells Fargo Housing Market Index posted a reading of 67 during this month’s survey, unchanged from August.

“Despite rising affordability concerns, builders continue to report firm demand for housing, especially as Millennials and other newcomers enter the market,” said NAHB Chairman Randy Noel. “The recent decline in lumber prices from record-high levels earlier this summer is also welcome relief, although builders still need to manage construction costs to keep homes competitively priced.”

A limited selection of pre-existing homes for sale combined with a robust economy and wage growth has kept demand for new homes high even in the face of rising prices.

Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 4.625 percent, 15-year rates are near 4.125 percent and the 5-year ARM is averaging 4.125 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.

Homebuilders feeling the impact of tariffs

Posted by The Aramco Group on Wed, Sep 19, 2018 @ 15:09 PM

New tariffs put in place by the Trump Administration on steel, aluminum and lumber imports have led to increased costs for American’s homebuilders. According to the National Association of Home Builders’ CEO Jerry Howard, the tariffs have added approximately $9,000 to the cost of building a new home on average.

Builders are also altering their designs when planning new homes, avoiding construction details like metal siding. Lumber prices, meanwhile, have soared 23 percent over last year after tariffs were imposed on softwoods from Canada.

If trade wars with China escalate, Howard predicts a 10 to 25 percent increase on interior design materials like quarts, marble and granite.

Today, conforming no-point 30-year fixed mortgage rates are averaging 4.625 percent, 15-year rates are near 4.125 percent and the 5-year ARM is averaging 4.125 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.

Student loans scare off millennial home buyers

Posted by The Aramco Group on Mon, Aug 27, 2018 @ 14:08 PM

With nearly a fifth of college graduates holding over $100,000, it could feel as if younger Americans are carrying the weight of a mortgage before they’ve even bought a home. And according to a survey conducted by The National Association of Realtors, that is precisely what is keeping millennials on the sidelines when it comes to homeownership.

Eighty-three percent of non-homeowners aged 22 to 35 with student loan debt cite their educational loans as the reason they have not purchased a home yet. They say their delay in buying a home is largely due to their student loan payment taking a large portion of their income. The average delay is about seven years, according to the report.

Millennials are those born between 1981 and 1996 and are so titled because they are the first generation to come of age in the new millennium.

Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 4.5 percent, 15-year rates are near 4.125 percent and the 5-year ARM is averaging 4.0 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.

San Diego among nation's most expensive housing markets

Posted by The Aramco Group on Sun, Aug 26, 2018 @ 14:08 PM

As inventory remains staggeringly low, home prices are continuing their steady upward climb towards all-time highs. According to The National Association of Realtor’s quarterly Metropolitan Median Area Prices and Affordability Report, single-family home prices last quarter increased in 90 percent of 178 metropolitan markets

Four of the five most expensive housing markets in the second quarter were all located in California: San Jose, San Francisco, Anaheim/Santa Ana/Irvine and San Diego. Urban Honolulu, Hawaii was also included in the top five.

There were 1.95 million existing homes for sale in the U.S. in the second quarter, roughly equal to a 4.1-month supply. This is well-below the 6-month supply experts consider to be a healthy level.

Today, conforming no-point 30-year fixed mortgage rates are averaging 4.5 percent, 15-year rates are near 4.0 percent and the 5-year ARM is averaging 4.0 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.

Mortgage activity shoots up amid favorable rates

Posted by The Aramco Group on Sat, Aug 25, 2018 @ 14:08 PM

Last week’s mortgage applications climbed 4.2 percent from the prior week according to the Mortgage Bankers Association’s Weekly Mortgage Applications Survey. Steady mortgage rates sparked the increase which was driven mostly by a six percent jump in the Refinance Index. Overall mortgage activity for the week ended August 17 was the best since early July.

Volume is still 15 percent lower than the same week last year as high prices brought on by a critical shortage of homes for sale drive buyers away.

Experts suggest that the increase in refinances may be due to less volatility in the bond market, keeping mortgage rates stable compared to earlier in the year. Conforming no-point 30-year fixed mortgage rates are averaging 4.5 percent, 15-year rates are near 4.0 percent and the 5-year ARM is averaging 4.0 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.

Foreclosure heatwave sweeps across U.S.

Posted by The Aramco Group on Fri, Aug 24, 2018 @ 14:08 PM

Foreclosure starts have increased in nearly half of the nation’s major metropolitan markets according to ATTOM Data Solution’s July 2018 U.S. Foreclosure Market Report. Statistics for last month show that foreclosure starts have increased on a yearly basis in 96 of the 219 metropolitan statistical areas analyzed in the report. This represents 44 percent of U.S. markets and the first increase in 36 months.

Overall, 30,187 properties entered the foreclosure process for the first-time last month. In San Diego foreclosure starts jumped 20 percent year-over-year from July 2017. Experts attribute the increase to riskier borrowers taking on hefty mortgages.

“Gradually loosing lending standards over the past few years have introduced a modicum of risk back into the housing market,” said Daren Blomquist, senior vice president at ATTOM. “Most susceptible to rising foreclosure starts are affordability-challenged markets where homebuyers are more financially stretched.”

Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 4.5 percent, 15-year rates are near 4.00 percent and the 5-year ARM is averaging 4.125 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.

Renters outnumber owners in San Diego

Posted by The Aramco Group on Thu, Aug 23, 2018 @ 14:08 PM

High home prices have resulted in more households choosing or being forced to rent, especially in America’s largest cities including San Diego. The growing number of people choosing leases over loans has resulted in renters increasing in each of the 50 largest cities in the U.S. since 2006. As of June 2018, 35.7 percent of all occupied homes nationwide were rented, according to Zillow. This is up from 31.1 percent in 2006 and 32.5 percent in 2000.

In many large cities, where home prices are more expensive, renters have come to outnumber homeowners. 69.9 percent of homes in Miami are rented – the highest among the top 50 cities. This was followed by New York (68 percent), Boston (65 percent) and Los Angeles (64.1 percent). In San Diego, 54.3 percent of households are renters.

In total, 29 of the top 50 markets had more renters than owners.

Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 4.5 percent, 15-year rates are near 4.0 percent and the 5-year ARM is averaging 4.125 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.

Seller's market may be tipping in favor of buyers

Posted by The Aramco Group on Wed, Aug 22, 2018 @ 14:08 PM

The last few years have unquestionably been a “seller’s market” with bidding wars and rising values boosting homeowners’ advantage. But according to a new report from Zillow, the market may have finally reached its tipping point.

Zillow’s data shows that approximately 14 percent of all listings in June saw a price cut – up from a recent low of 11.7 percent in 2016. Home price growth has also slowed in many major metropolitan markets.

“The housing market has tilted sharply in favor of sellers over the past two years,” said Zillow senior economist Aaron Terrazas. “But there are very early preliminary signs that the winds may be starting to shift-ever-so-slightly.”

The shift in the market is being seen quite prominently in San Diego where 20 percent of all listings had a price cut in June. This is up from 12 percent a year ago.

Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 4.5 percent, 15-year rates are near 4.125 percent and the 5-year ARM is averaging 4.0 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.