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Mortgage application volume on the slide

Posted by Mehran Aram on Sun, Sep 8, 2019 @ 08:09 AM

For the third consecutive week, the volume of mortgage applications has declined. According to The Mortgage Bankers Association’s weekly Market Composite Index for the week ended August 30, total mortgage applications in the U.S. fell 3.1 percent on a seasonally adjusted basis from the week prior.

Applications to refinance an existing mortgage declined seven percent, although lower rates kept that figure elevated above 2018’s numbers. Despite last week’s decline, the volume of refinances remain 152 percent higher than they were in August 2018 when mortgage rates were nearly a full percentage point above today’s levels.

Currently, mortgage rates are at their lowest point since November 2016 with conforming no-point 30-year fixed mortgage rates are averaging 3.625 percent and 15-year rates are near 3.125 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.

Topics: mortgages, Mortgage applications, refinance, Mortgage rates, Mortgage Payments, Refi

Millennials want to own – they just can’t afford it

Posted by Mehran Aram on Sat, Sep 7, 2019 @ 07:09 AM

Although an increasing number of young adults say home ownership is among their top goals, data shows that unaffordable prices and mounting student loan debt is making this goal harder to achieve. In a survey conducted jointly by CoreLogic and RTi Research shows that more than a quarter of millennials are interested in purchasing a home within the next year.

The increase in Millennial home buyers entering the market putting increased pressure on home prices as well.

“A growing number of millennials are expressing an interest in buying homes, reinforcing the theory that this cohort is continuing to engage within the housing market,” said Frank Martell, president and CEO of CoreLogic. “But with so few homes available for sale, the imbalance has created an affordability crisis that is getting worse every day.

Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 3.625 percent and 15-year rates are near 3.125 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.

Topics: Millennials, home purchase, Housing Market, CoreLogic, home ownership, Mortgage rates, Housing Affordability, Millennial Homeowners, Affordability, Young Adults

San Diego senior population expected to double by 2030

Posted by Mehran Aram on Fri, Sep 6, 2019 @ 08:09 AM

There were approximately 375,000 senior citizens living in San Diego County as of 2015, according to San Diego Magazine – a figure that is expected to double to 724,000 over the next 12 years. While this is hardly surprising given San Diego’s status as one of the top places to retire, it presents challenges for those living on a fixed income.

San Diego is one of the most expensive housing markets in the nation with average home prices topping well over $500,000. Yet, social security income for a single retiree in San Diego is less than $20,000 per year.

Fortunately, those looking to relocate to San Diego in their golden years may find benefit in a H4P or HECM for Purchase. H4P is a type of home loan that is insured by the FHA and provides those 62 or older an opportunity to combine their down payment with loan proceeds from a reverse mortgage. Most appealing is that the loan requires no monthly mortgage payment.

Today, conventional conforming no-point 30-year fixed mortgage rates are averaging 3.625 percent and 15-year rates are near 3.125 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.

Topics: Reverse Mortgage, San Diego County, senior citizen, Retirement, Seniors, Reverse Mortgage for Purchase, Mortgage rates, HECM for Purchase, San Diego Housing Market, San Diego Housing, Fixed Income, H4P

California lawmakers reach deal on rent control

Posted by Mehran Aram on Thu, Sep 5, 2019 @ 15:09 PM

Renters across California may soon find some relief from endless rent hikes as a result of an agreement reached between Governor Gavin Newsom and the Legislature. The proposal would cap the rate at which landlords can raise rent prices – a maximum of 5 percent plus inflation per year.

The bill now heads to both the State Senate and the Assembly for a vote. Although strongly opposed by landlords, should the bill pass as it is expected to do, would be a major victory for rents who have faced steep increases over the past several years. As more Californian’s found home prices unaffordable, demand for apartments increased, resulting in a rapid increase in lease costs.

Part of the compromise included an exemption on apartments built within the last 15 years from the rent cap – up from a period of 10 years proposed by tenant advocates earlier on.

Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 3.625 percent and 15-year rates are near 3.125 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.

Topics: Mortgage rates, Rent Control, California Housing Market, Gavin Newsom, California Rent Prices, California Home Prices, Rent Hikes

San Diego home still selling for a premium

Posted by Mehran Aram on Sat, Aug 31, 2019 @ 08:08 AM

A decade removed from the Great Recession, the housing market in the U.S. appears to be normalizing. One indicator of this is that the share of homes selling above their original list price is dropping. Bidding wars over the limited number of homes for sale caused prices to soar well-above list prices for much of the last several years. But a new report from CoreLogic shows that the share of homes selling at or above list price has returned to early 2000 levels.

The peak was reached in Q2 2018 when 43 percent of all home sold in the U.S. went for more than asking. This is triple the level during the peak of the recession in early 2008. While this has dropped to 39.2 percent nationally as of this summer, San Diego stands apart.

The greater San Diego market remained just below the all-time high with 41 percent of homes selling at or above the list price. The region joins other hot markets like San Francisco (83 percent) that have bucked the national trend.

Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 3.625 percent and 15-year rates are near 3.125 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.

Topics: home sales, San Diego County, Housing Market, CoreLogic, Mortgage rates, San Diego Housing Market, San Diego Home Sales, U.S. Housing Market

San Diego home prices counter national trend

Posted by Mehran Aram on Fri, Aug 30, 2019 @ 07:08 AM

While home price growth is slowing down across the U.S., San Diego continues to defy the odds. The rate of home price appreciation in the region grew for the fifth consecutive month in June. This data is according to the latest S&P CoreLogic Case-Shiller National Home Price Index.

San Diego home prices grew 0.7 percent, faster than the national average of 0.6 percent. Local home prices have increased 1.3 percent over the past year.

A cooling of the housing market is being experienced nationwide as high price tags for available homes were beyond the average homebuyers budget. While this is true in San Diego as well, demand to purchase a home in America’s Finest City continues to drive prices higher.

Today, conforming no-point 30-year fixed mortgage rates are averaging 3.625 percent and 15-year rates are near 3.125 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.

Topics: San Diego County, home prices, Housing Market, homebuyers, Mortgage rates, San Diego Housing Market, S&P CoreLogic Case Shiller, San Diego Home Prices, Americas Finest City, U.S. Housing Market, Home Price Index

California housing shortage worse than previously thought

Posted by Mehran Aram on Thu, Aug 29, 2019 @ 06:08 AM

After several months of prodding by Gov. Gavin Newsom, the Southern California Association of Governments, representing half of the state’s population, agreed in June to zone for the development of 430,000 new homes through 2029. Apparently, that figure is short of what is actually needed, drastically so.

According to a letter released by state housing officials last week, the need over the next decade is closer to 1.3 million new homes. Even this new estimate is still far off from the 3.5 million dwellings Newsom is pushing for.

The call for more housing comes as California is battling an unprecedented housing shortage.

Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 3.625 percent and 15-year rates are near 3.125 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.

Topics: new homes, new housing, Mortgage rates, California Housing Market, Affordable Housing, housing shortage, Gavin Newsom, California Housing Shortage

Federal gov’t buys $16.M luxury penthouse

Posted by Mehran Aram on Wed, Aug 28, 2019 @ 16:08 PM

The image many conjure up when they think of government housing is probably not a posh pad in a skyrise in New York. Nonetheless, the federal government is now the owner of a five-bedroom, 6.5 bath penthouse on the 37th floor located at 50 United Nations Plaza.

The $15.85 million condo will be the residence for the U.S. Ambassador to the United Nations. That price tag however is a bargain compared to the $24,250,000 original listing. The building is home to other U.N. ambassadors including the U.K.’s representative who resides on the 38th floor.

Prior to the real estate transaction, the U.S. government rented a unit in the same building for former ambassador Nikki Haley.

Today, conforming no-point 30-year fixed mortgage rates are averaging 3.625 percent and 15-year rates are near 3.125 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.

Builder attention shifts from luxury segment to starter homes

Posted by Mehran Aram on Tue, Aug 27, 2019 @ 05:08 AM

It appears that wealthy buyers are holding off for the time being as seen in a growing number of luxury homes that are sitting on the market, another indication that high prices and concerns about a recession are beginning to weigh down the housing market.

Toll Brothers, a luxury home builder, shared last week that orders for new home developments in California have plummeted 36 percent compared to last year.

Low mortgage rates and a cooling off in price gains are prompting would-be entry level buyers to get in the market. This is driving demand for starter-homes, which are more moderately priced, to skyrocket.

Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 3.625 percent and 15-year rates are near 3.125 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.

Topics: Housing Market, Homebuilders, Luxury Homes, Starter Homes

Foreclosure filings decline by 19 percent in July

Posted by Mehran Aram on Mon, Aug 26, 2019 @ 15:08 PM

Foreclosures filings in the U.S. have fallen yet again according to new information released last week. ATTOM Data Solutions shared in its July 2019 Foreclosure and Market Report that filings, default notices, scheduled auctions and bank repossessions were down 19 percent from June and 21 percent from the same period last year.

Nationally, there was a total of 51,056 properties with foreclosure filings against them in July. Counter to the national trend, 21 states and the District of Columbia actually posted year-over-year increases in foreclsoure starts. Lenders repossessed over 11,000 homes in the U.S.

California has seen double digit drops in its statewide foreclosure rate for several months.

Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 3.625 percent and 15-year rates are near 3.125 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.

Topics: foreclosures, Foreclosure Filings, ATTOM Data Solutions, Foreclosure Starts