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Homeownership rate dips in Q2

Posted by Mehran Aram on Wed, Jul 31, 2019 @ 06:07 AM

The U.S. homeownership rate, which has slowly made a comeback after reaching a low-point in 2016, slipped slightly in Q2 2019. According to the Census Bureau, the rate fell on both a monthly and yearly basis to 64.1 percent. The homeownership rate in the costlier West was even lower as of the end of June at 59.3 percent.

The number of households in the U.S. that owned their home fell steadily for the 10 years following the Great Recession but began to reverse course in 2016 after hitting a low of 62.9 percent.

Homeownership is the highest among those 65 years of age or older at 78.0 percent and lowest for Millennials (those under 35) at 36.4 percent.

Today, conforming no-point 30-year fixed mortgage rates are averaging 4.00 percent and 15-year rates are near 3.375 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: homeownership, Mortgage rates, Homeownership Rate, U.S. Census Bureau

Average credit score of home buyers rises

Posted by Mehran Aram on Tue, Jul 30, 2019 @ 05:07 AM

Securing the best terms on a home loan can help buyers save money and with credit scores rising across the U.S., doing this is becoming more common. According to a new report, the average credit score of Americans applying for a mortgage in June rose to a three-year high. The data comes from mortage software company Ellie Mae.

Credit scores for home buyers averaged 731 last month – the highest since September 2016. The higher FICO scores are a product of a strong economy and plentiful jobs helping borrowers make on-time payments on their bills. The current unemployment rate nationwide is 3.7 percent, near the lowest level in 50 years.

Top tier credit scores are helpful to buyers as banks continue to impose strict lending standards.

Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 4.00 percent and 15-year rates are near 3.375 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, home buyers, Credit Score, Ellie Mae

Falling mortgage rates make home buying more affordable

Posted by Mehran Aram on Mon, Jul 29, 2019 @ 09:07 AM

Mortgage rates are currently at their lowest point in a year and further declines may be on the horizen. This is making borrowing more affordable for consumers who have been battling rising home prices for years. A new study has found that more than 257,000 Southern Californians could theoretically qualify to buy an entry level home due to today’s low mortgage rates.

The analysis, conducted by John Burns Real Estate Consulting LLC, studied households in Southern California that could now afford to buy a home without exceeding 33 percent of their monthly income on a mortgage payment. Lower mortgage rates helped qualify more than a quarter million residents.

Nonetheless, it remains that less than a third of households in the region can afford an entry-level home.

Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 4.00 percent and 15-year rates are near 3.375 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, home affordability, Low Mortgage Rates

Calif. state officials label California home sales as “weak”

Posted by Mehran Aram on Sun, Jul 28, 2019 @ 08:07 AM

In a report issued last week by the California Legislative Analyst’s Office, home sales in the Golden State were called “weak”, a volte-face to what is normally considered to be one of the hottest housing markets in the U.S.

The state office cited new data that shows statewide home sales were notably lower than historic norms in June.

“Home sales were on a clear downward trend during the second half of 2018 and the beginning of 2019,” the report read. “Sales remain relatively weak.” The report notes however that Californian’s shouldn’t fear an economic downturn or a bust in the housing market. Rather, the latest data is being considered by some economists as merely the ebb and flow of the industry.

Today, conforming no-point 30-year fixed mortgage rates are averaging 4.00 percent and 15-year rates are near 3.375 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, California Home Sales, Golden State

Home sales fall more than expected

Posted by Mehran Aram on Sat, Jul 27, 2019 @ 05:07 AM

Sales of previously owned homes in the U.S. decline last month, marking the sixteenth consecutive month of year-over-year declines. High home prices and low inventory continues to keep potential home buyers on the sidelines. The 1.7 percent monthly drop in home sales in June is far greater than the 0.6 percent decline predicted by economists in a survey by The Wall Street Journal.

Although the rate at which home prices are rising has slowed over the past year, the median home price in the U.S. remains 4.3 percent higher than the same month in 2018. Prices for existing single-family homes have climbed every month for the past 88 months.

Driving prices higher is the short-supply of homes on the market. Inventory levels were at 4.4 months nationally. Experts cite 6 months as a healthy supply.

Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 4.00 percent and 15-year rates are near 3.375 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, home prices, Mortgage rates, median home price, Low Inventory

Homeowners staying put longer than ever

Posted by Mehran Aram on Fri, Jul 26, 2019 @ 09:07 AM

American homeowners are choosing to live in their homes longer than ever before. The average tenure surpassed eight years in Q2 of 2019 – a record high. This is nearly double the length of time homeowners held on to their property before the Great Recession when the average tenure was near 4.21 years. This latest data is from ATTOM Data Solutions.

High home prices are the main culprit behind the lengthening tenancy. Homeowners are hanging onto their properties longer, likely hoping that sooner or later prices will cool.

San Francisco had the longest tenure in the nation with homeowners residing in their homes an average of 10.26 years.

Today, conforming no-point 30-year fixed mortgage rates are averaging 4.00 percent and 15-year rates are near 3.375 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 prices, homeowners, homeownership, Mortgage rates, ATTOM Data Solutions

San Diego housing market appears to be cooling off

Posted by Mehran Aram on Wed, Jul 24, 2019 @ 05:07 AM

It may be summer in America’s Finest City but that’s not keeping the housing market sizzling. Home price growth in San Diego has begun to level off compared to the steep price increases seen last summer.

Median home prices in San Diego are still climbing but over the past twelve months it has been a quite modest 1.9 percent increase, according to Zillow. The online real estate site expects the tepid growth to continue through next year.

With home prices leveling off and mortgage rates at their lowest levels in over a year, demand for housing in San Diego is expected to remain strong through 2020.

Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 4.00 percent and 15-year rates are near 3.375 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, San Diego, Zillow, Mortgage rates, San Diego Housing Market, median home price, San Diego Home Prices, Americas Finest City, San Diego Median Home Price, San Diego Housing

Advanced degrees pay off for house-hunters

Posted by Mehran Aram on Fri, Jul 19, 2019 @ 05:07 AM

In the current housing market where mortgage payments can eat up a large part of the median salary, having an advanced degree can go a long way. A new study conducted by Zillow shows that in many high-priced California cities, homes are largely limited to those with the advanced degrees that yield higher salaries.

The analysis found that median mortgage payments are affordable for those with a high school education in 36 of the 50 largest U.S. metros. The remaining 14 markets require wages associated with at least two-years of college. Income levels for university graduates are necessary to afford a median priced home in many West Coast metros including San Diego.

In even pricier markets like San Jose and San Francisco, monthly mortgage payments are within the brackets of those earning the typical income of someone with a post-graduate degree.

Today, conforming no-point 30-year fixed mortgage rates are averaging 4.00 percent and 15-year rates are near 3.375 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, Wages, Zillow, Mortgage rates, Mortgage Payments, House Hunters, Advanced Degree

Home selling: what stays and what goes

Posted by Mehran Aram on Thu, Jul 18, 2019 @ 06:07 AM

An eccentric seller who had an emotional attachment to the door knobs in a home, a prize-winning rose garden and a crystal chandelier. These are just some of the unorthodox items sellers have taken from their home prior to moving out according to stories from seasoned Realtors. But according to the California Association of Realtors, there are some rules about what can actually be removed from a property.

The general rule-of-thumb is, if it’s nailed down, bolted or mounted, it stays behind. Understanding the difference between a fixture and personal property is key to knowing what to pack up. Buyers are legally entitled to receive all of the home fixtures as they appeared when the offer to purchase was made. But that hasn’t stop some sellers from stripping the home of some essentials that should have stayed like the toilet paper holders, light bulbs and the knobs to all the drawers and cabinets.

Unless sellers explicitly state otherwise in the negotiating process, home buyers shouldn’t expect to enter their new homes as victims of petty theft.

Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 4.00 percent and 15-year rates are near 3.375 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, home selling, Home Sellers

Real estate history repeats itself

Posted by Mehran Aram on Wed, Jul 17, 2019 @ 05:07 AM

Wage increases not keeping up with the rising cost of living has been plaguing the housing market for several years, but a new study of historical trends shows that this dilemma has been frustrating buyers for decades.

A report from Clever Real Estate shows that median home prices have surged 121 percent nationwide since 1960 while household income increased just 29 percent. Renters have also felt the pain of rising prices with a 72 percent increase since 1960.

Homes in the West have felt this problem more acutely as median home prices have risen 195 percent over the past five decades, compared to wages rising only 26 percent over the same time period.

Today, conforming no-point 30-year fixed mortgage rates are averaging 4.00 percent and 15-year rates are near 3.375 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, Wages, Renters, household income, home buyers, median home price, Cost of Living, Historical Home Prices