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The spending habits of San Diego households

Posted by Mehran Aram on Thu, Oct 17, 2019 @ 05:10 AM

The spending habits of San Diego households

The U.S. Bureau of Labor Statistics reported last week that households in the San Diego-Carlsbad metropolitan area spent an average of $79,672 per year in 2017-2018. This includes all major living expenses including housing, healthcare, food and transportation. In comparison, the national average spending amount was $60,580.

In general, San Diego-area households spent their money in ways that aligned with the rest of the nation with a couple of notable differences. Housing is the largest expense for residents in the region at $28,591 per year. This accounts of 35.9 percent of a San Diego household’s budget, compared to a U.S. average of 33 percent.

Residents of San Diego also tend to spend more on dining out. Nationwide, households spend 43.6 percent of their food budget on eating away from home. San Diegans spend 47.4 percent.

Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 3.75 percent and 15-year rates are near 3.25 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 County, San Diego, Mortgage rates, households, Household Spending, Household Budget, National Average Spending, Housing Expenditure, U.S. Bureau of Labor Statistics

California home sales see worst month since 2015

Posted by Mehran Aram on Wed, Oct 16, 2019 @ 17:10 PM

Concerns about an economic recession on the horizon appears to be dragging the housing market down. According to data from CoreLogic, August was the worst month for home sales in four years. This marks the twelfth month out of the last 13 in which sales were down on a year-over-year basis, the report stated.

California home sales were down 0.2 percent from the previous month and 2.8 percent lower than August 2018. Along with sales being on the slide, median home prices also declined – down 0.2 percent from July.

Historically, August sees an end-of-the-summer bump in home sales. Experts suggest that with the current economic uncertainty, if mortgage rates weren’t so favorable to buyers the decline might have been worse.

Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 3.75 percent and 15-year rates are near 3.25 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, California, CoreLogic, Mortgage rates, California Housing Market, median home price, California Home Sales, California Median Home Price

Chinese homebuying in Calif. slows

Posted by Mehran Aram on Mon, Oct 14, 2019 @ 05:10 AM

The California Association of Realtors reports that Chinese international homebuyers accounted for 40 percent of all foreign homebuyers in California last year. That buying trend appears to be waning in 2019.

The 2019 share of Chinese international home purchases in California appears to be half of what it was in 2017 according to the NAR. Tariffs imposed on the Chinese by the Trump Administration has caused uncertainty about the Chinese economy and weakened the currency, likely prompting the decline in home purchases in the state.

In addition, rising home prices have decreased profit margins for international investors overall, particularly in California.

Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 3.75 percent and 15-year rates are near 3.25 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: California, National Association of Realtors, Mortgage rates, California Housing Market, Chinese Buyers, Foreign Homebuyers

VA refunds millions in loan fees

Posted by Mehran Aram on Sun, Oct 13, 2019 @ 07:10 AM

The U.S. Department of Veterans Affairs announced last week that it was refunding more than $400 million in loan fees that were incorrectly charged after a lengthy review of millions of mortgages issues over the last 20 years. The VA sent letters to those who would be receiving a refund.

Veterans and service members who utilize a VA loan must pay a small funding fee when applying but disabled veterans are exempt. An inspector general report released earlier this year showed that no fewer than 53,000 disabled veterans had been inadvertently charged the fees. That discovery prompted this more comprehensive study that is resulting in the mass refunds.

The VA also announced a new requirement that lenders ask veterans applying for a loan about their disability status. VA loans allow active and former military and their qualifying family members to purchase a home without needing a down payment.

Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 3.75 percent and 15-year rates are near 3.25 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: mortgages, VA, Mortgage rates, Veteran Affairs, Loan Fees, Service Members, Armed Forces

Senior housing wealth hits new record

Posted by Mehran Aram on Sat, Oct 12, 2019 @ 08:10 AM

An increase in home values helped push housing wealth among homeowners 62 and older to a new all-time high. According to the National Reverse Mortgage Lenders Association, senior housing wealth grew by 0.5 percent or $32 billion in the second quarter to $7.17 trillion.

“Many retired and soon-to-be-retired Americans lack the financial assets for a comfortable retirement,” said NRMLA’s Executive Vice President Steve Irwin. “Yet the most commonly held and valuable asset for most of them is their home.”

Programs like a reverse mortgage allow for senior homeowners to utilize their home’s equity to eliminate monthly mortgage payments and receive supplemental retirement income in the form of a lump sum, monthly payout or a line of credit.

Today, conforming no-point 30-year fixed mortgage rates are averaging 3.75 percent and 15-year rates are near 3.25 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, Mortgage rates, Senior Housing, Senior Housing Wealth, NRMLA

Homeowners Associations: Friend or Foe?

Posted by Mehran Aram on Fri, Oct 11, 2019 @ 05:10 AM

The number of homeowners who belong to a Homeowners Association has ballooned over the past 50 years, growing from 10,000 communities in the 1970’s to over 300,000 today. And according to a survey from Porch.com, it’s a love-hate relationship.

HOA households appreciate that their community association ensures clean streets, can help settle neighborly disputes and offer amenities like a neighborhood gym and pool. But many also find the rules and costs associated with an HOA to be hefty.

The survey found that the most common HOA fine was for improper landscaping and trash cans being left on the curb beyond pickup times. Fifty-two percent of homeowners say they have not had to pay a fine to their HOA but millennials, at a rate of 54 percent, said they would likely skip out on paying a fine should they get one.

Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 3.75 percent and 15-year rates are near 3.25 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: HOA Payments, Mortgage rates, homeowners association, HOA, households, Homeowner Fees

Home remodels that pay off in many ways

Posted by Mehran Aram on Tue, Oct 8, 2019 @ 05:10 AM

Some homeowners invest in a renovation of their kitchen or bathroom because they hope that it will pay off when they sell their home, adding value and appeal. But in a new report from The National Association of Realtors, the benefits of a home remodeling project can pay homeowners back in ways that aren’t monetary at all.

NAR’s 2019 Remodeling Impact Report showed that in addition to potentially raising the resale value of a home, the job and sense of accomplishment for homeowners adds further incentive to taking on a remodeling project. In fact, 74 percent of owner-respondents to a survey state that they ultimately have a greater desire to be in their home after completing a project and 65 percent report feeling increased enjoyment in their home.

Today, conforming no-point 30-year fixed mortgage rates are averaging 3.75 percent and 15-year rates are near 3.25 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: Deferring Social Security, National Association of Realtors, Mortgage rates, home remodel, Remodel

Builders constructing more single-story homes

Posted by Mehran Aram on Sun, Oct 6, 2019 @ 08:10 AM

With more and more retirees choosing to age in the place, the popularity of single-family homes with only one story is growing. While two-story homes are still more popular among homebuilders and buyers, the gap is slowly shrinking. The National Association of Home Builders reports that the share of new homes with two or more stories declined from 55 percent in 2017 to 53 percent in 2018. Single-story homes increased in volume during that same period, growing from 45 percent of newly constructed homes to 47 percent.

Millennials, the fastest growing age bracket of homebuyers, have a preference for two-story homes according to the NAHB. 55 percent of Millennial respondents to a survey report wanting a two-story home compared to 35 percent who want a single-story. Meanwhile, 80 percent of Baby Boomers, not wanting to climb stairs, said they prefer to live in a single-story home.

Today, conforming no-point 30-year fixed mortgage rates are averaging 3.75 percent and 15-year rates are near 3.25 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: National Association of Home Builders, single family homes, Mortgage rates, Home Construction

Six-figure salary needed to afford local homes

Posted by Mehran Aram on Sat, Oct 5, 2019 @ 08:10 AM

Using information from the National Association of Realtors, mortgage data provider HSH.com put forth a study that shows how much one needs to earn in order to afford a median home in a given region. On a national level, a household needs to take in $61,123 per year to afford a home but this varies drastically when looking at markets along the coast.

In San Jose, the most expensive metropolitan area to a buy a home in, an income of $254,.836 per annum is needed to keep your monthly mortgage payment from swallowing your paycheck. San Francisco requires a salary of $198,978 per year, while San Diegans need to take in $127,292.

The study calculated the annual before-tax income required to cover the principal, interest, taxes and insurance payments against standard mortgage-to-debt earnings ratios.

Today, conforming no-point 30-year fixed mortgage rates are averaging 3.75 percent and 15-year rates are near 3.25 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, National Association of Realtors, Affordability

Homeowners respond to lower mortgage rates by refinancing

Posted by Mehran Aram on Fri, Oct 4, 2019 @ 05:10 AM

A rush of homeowners looking to refinance their home in response to another drop in mortgage rates helped push the volume of mortgage applications higher last week. The Mortgage Bankers Association reported in its Market Composite Index for the week ended September 27 that total volume jumped 8.1 percent over the week. This is a turnaround from the 10.1 percent decline seen the prior period.

The increase was driven primarily by a 14 percent spike in the Refinance Index which is currently 133 percent over where it was last year when rates were higher. The refinance share of mortgage activity increased to 58.0 percent of total applications, up from 54.9 percent the previous week.

Those looking to refinance their home will find conforming no-point 30-year fixed mortgage rates are averaging 3.75 percent and 15-year rates are near 3.25 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 Bankers Association, Mortgage rates