ARAMCO Report - The Mother of ALL Mortgage Blogs!

Government support of 30-year mortgage questioned at confirmation hearing

Posted by Mehran Aram on Tue, Feb 19, 2019 @ 05:02 AM

The Senate Banking Committee met last week for the confirmation hearing of Mark Calabria, the Trump Administration’s nominee to oversee Fannie Mae and Freddie Mac – mortgage giants that guarantee roughly half of U.S. home loans. Calabria was a controversial choice as he has previously criticized government control of Fannie and Freddie and suggested that they should pull back their support of the 30-year mortgage.

However, Calabria acknowledged the importance of the long-term mortgage in his confirmation hearing on Thursday and added that if confirmed he would “carry out the clear intent of Congress, not impose my vision”. Calabria has such a loan himself on his Washington D.C. property, according to his nomination disclosures.

The nominee said he would scrutinize big banks if confirmed and committed to establishing firm affordable housing goals and preventing housing discrimination.

Today, conforming no-point 30-year fixed mortgage rates are averaging 4.25 percent, 15-year rates are near 3.75 percent and the 5-year ARM is averaging 4.25 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: Fannie Mae, Freddie Mac, government, Mortgage rates, Home Loans, 30-Year Mortgage, Mark Calabria

Presidential real estate

Posted by Mehran Aram on Mon, Feb 18, 2019 @ 07:02 AM

A 30-acre plot of land in Illinois farm-country once owned by President Abraham Lincoln sold at auction last week, ahead of the Presidents Day holiday. The (Charleston) Times-Courier and Mattoon Journal-Gazette reported last week that land sold for $300,000 or $10,000 per acre. The buyer chose to remain anonymous.

The sixteenth president bought 40 acres in 1841 from his father Thomas Lincoln. Six of those acres have become a part of the Lincoln Log Cabin State Historic Site.

The birthplace, childhood homes and private residences of the nation’s chief executives are often given a special designations as national parks or historic sites. These include the John Adams Mansion, the Zachary Taylor House, Jimmy Carter’s boyhood home and the Bill Clinton Birthplace National Historic Site.

Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 4.25 percent, 15-year rates are near 3.75 percent and the 5-year ARM is averaging 4.25 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: Abraham Lincoln, Mortgage rates, President's Day, Presidential Real Estate, Holiday

Buyers spending over 3 months to find next home

Posted by Mehran Aram on Sun, Feb 17, 2019 @ 08:02 AM

A shortage of homes for sale on the market is taking its toll on house hunters. A survey conducted by the National Association of Home Builders showed that 58 percent of buyers actively searching for a home to buy in the fourth quarter of 2018 had been looking for at least three months.

When respondents to the survey were asked what the primary reason for the delay in selecting home was, they cited a lack of homes for sale in their price range (49 percent) followed by not finding a home with their desired features (44 percent) and not finding a home in the right neighborhood (43 percent).

Despite the hurdles to finding the perfect home for the right price, just 16 percent of those surveyed say could give up a new home purchase altogether if these conditions persist.

Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 4.25 percent, 15-year rates are near 3.75 percent and the 5-year ARM is averaging 4.25 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 Builders, NAHB, Mortgage rates, Housing Inventory, home buyers, Survey

Economic uncertainty drags down mortgage application volume

Posted by Mehran Aram on Sat, Feb 16, 2019 @ 05:02 AM

The Mortgage Bankers Association reported this week that mortgage applications have dropped in volume again. This is the sixth decrease over the last eight weeks. The Market Composite Index, a measure of application volume declined by 3.7 percent on a seasonally adjusted basis during the week ended February 8. Declines in mortgage rates generally spur mortgage activity but trepidation about the overall economy seems to have countered that.

“Application activity fell last week – even with rates decreasing – as renewed uncertainty about the domestic and gobal economy likely held potential homebuyers off the market,” said Joel Kan, MBA’s Associate Vice President of Industry Surveys and Forecasts. “The 30-year fixed-rate mortgage dropped to its lowest level since last March, and was 52 basis points lower than its recent high last November.”

Today, conforming no-point 30-year fixed mortgage rates are averaging 4.25 percent, 15-year rates are near 3.75 percent and the 5-year ARM is averaging 4.25 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 applications, Mortgage rates, economy, Economic Uncertainty

Volume of past-due mortgages continues to shrink

Posted by Mehran Aram on Fri, Feb 15, 2019 @ 16:02 PM

Nationwide, mortgage delinquencies have fallen yet again. CoreLogic, which measured loan performance for November reported the drop this week. It was the eleventh consecutive month of yearly declines, placing past-due mortgages near its lowest levels in nearly two decades.

CoreLogic’s Chief Economist, Frank Nothaft stated the decrease was driven by solid income growth which “put the U.S. homeowner on solid ground.” He added that this should provide a cushion for homeowners should the housing market turn down later this year.

Just 4.1 percent of outstanding mortgages nationwide were 30 days or more past due in November 2018. Including properties in foreclosure, this is a substantial 1.1 percent decline.

Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 4.25 percent, 15-year rates are near 3.75 percent and the 5-year ARM is averaging 4.25 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, mortgage news, Mortgage rates

Valentine’s Day geography

Posted by Mehran Aram on Thu, Feb 14, 2019 @ 05:02 AM

When chocolates and roses just aren’t enough for your special Valentine this year, what is more romantic than real estate? And for lovebirds looking to really get swept up in the holiday, it’s Valentine’s Day year-round in Valentine, Arizona; Valentine, Nebraska; Valentine, Texas and Valentine, Virginia. They’re all small towns in remote parts of their state, but they have a lot of heart.

If living in a city named for a martyred saint from the Middle Ages doesn’t speak romance to you, you could try Romance, Wisconsin or head north to Lovers Leap, California. You could stop at Arrow, Idaho on the way to Cupid, Oklahoma. If you can’t afford Diamond, Wyoming, you could try Gold, Pennsylvania.

While all these places sound ideal for sweethearts, it’s San Diego that was previously named by Travel+Leisure as one of America’s most romantic cities. Today, soulmates will find conforming no-point 30-year fixed mortgage rates are averaging 4.25 percent, 15-year rates are near 3.75 percent and the 5-year ARM is averaging 4.25 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, Valentine's Day

Home buyer bidding wars at record low

Posted by Mehran Aram on Wed, Feb 13, 2019 @ 12:02 PM

In yet another sign that the housing market may be slowing down, online real estate brokerage Redfin reported this week that the number of home buyers who are facing bidding wars has decreased substantially over the last few months, reaching a near record low in January.

Just 13 percent of offers written by Redfin agents had multiple offers, little changed from December’s record low and down from 53 percent a year ago. Redfin reports that San Diego is one of the most competitive housing markets in the nation yet still saw a dramatic decrease in bidding wars over the past year. Eighteen percent of San Diego offers faced competition, compared to 63 percent in January 2018.

Only one in five San Diego buyers faced a bidding war last month, compared to over half last year.

Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 4.25 percent, 15-year rates are near 3.75 percent and the 5-year ARM is averaging 4.25 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, Housing Market, Mortgage rates, San Diego Housing Market, home buyers, bidding war

Survey: Americans feeling confident about finances

Posted by Mehran Aram on Tue, Feb 12, 2019 @ 05:02 AM

Fannie Mae’s Home Purchase Sentiment Index climbed 1.2 points last month to a reading of 84.7, a reversal of the 2.3 point drop in December but still shy of the all-time high of 89.5 reached a year ago. The Home Purchase Sentiment Index (HPSI) is compiled from a monthly National Housing Survey conducted by Fannie Mae.

The increase was driven by an 8-point increase in the net share of respondents who reported higher income levels and a 4-point increase in the net share of those who say now is a good time to buy a home.

However, the number of Americans who believe home prices will continue to climb has fallen 22-points since last year. This latest installment of the monthly survey is the first since the partial government shutdown that begin in December furloughed over 800,000 federal workers.

As for mortgage rates, today, conforming no-point 30-year fixed mortgage rates are averaging 4.375 percent, 15-year rates are near 3.75 percent and the 5-year ARM is averaging 4.25 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, home buying, Fannie Mae, National Housing Survey, Mortgage rates, Home Purchase Sentiment, Housing Sentiment

Home sellers averaged $61k in profits in 2018

Posted by Mehran Aram on Mon, Feb 11, 2019 @ 05:02 AM

Overall, 2018 was a seller’s market but recent housing data suggests that that may change soon. Property owners who sold a home in 2018 saw an average profit of $61,000 according to a new report. This is up from $50,000 in 2017 and $39,500 in 2016.

ATTOM Data Solution’s Year-End 2018 U.S. Home Sales Report showed an average 32.6 percent return on investment for Americans who sold a home last year, compared to their original purchase price. Many markets in California saw ROI’s well above twice the national average.

Driving the profits for home sellers are home prices rising to new records in 69 percent of major U.S. markets including San Diego.

Today, conforming no-point 30-year fixed mortgage rates are averaging 4.375 percent, 15-year rates are near 3.75 percent and the 5-year ARM is averaging 4.25 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, Mortgage rates, California Housing Market, San Diego Housing Market, California Home Sales, Home Sellers, Home Profits, Housing Data

Seniors holding on to their homes longer

Posted by Mehran Aram on Sun, Feb 10, 2019 @ 05:02 AM

More of America’s senior citizens are choosing to put off downsizing in retirement and instead are making the decision to stay in their family home. According to a new report from Freddie Mac, this may be a significant cause of the housing shortage that exists.

An analysis from Freddie Mac suggests that seniors choosing to age in place is responsible for at least 1.6 million homes not being listed for sale in 2018. For many seniors living on a fixed income, holding on to the family home is often made possible through powerful financial tools like reverse mortgages.

Improved health and longevity are giving retirees more reason to utilize their homes equity as a form of supplemental income. Reverse mortgages allow those 62 or older to not only eliminate existing mortgage payments but also to receive extra income in the form of a lump sum, monthly payout or a line of credit.

Meanwhile, conventional conforming no-point 30-year fixed mortgage rates are averaging 4.375 percent, 15-year rates are near 3.75 percent and the 5-year ARM is averaging 4.25 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, senior citizen, Retirement, Seniors, Freddie Mac, downsizing, Age in Place, housing shortage