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Mehran Aram

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Fall comes early for the housing market

Posted by Mehran Aram on Sun, Sep 15, 2019 @ 07:09 AM

Realtor.com reported this week that home prices fell 1.8 percent in August, unordinary for a month that traditionally still sees summer homebuyers clamoring over real estate.

“What it tells us is, fall came earlier than expected,” said Senior Economist George Ratiu of Realtor.com. A lot of homes on the market are too expensive, and a lot of buyers are taking a break.”

This coincides with a new Realtor.com survey that shows both buyers are sellers are concerned that a recession is on the horizen. Fifty-six percent of prospective home shoppers say that is causing them to rethink their home purchase for now.

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 prices, home purchase, real estate, homebuyers, Mortgage rates, Home Sellers, Home Shoppers

Bold, new rent control law passes in Calif.

Posted by Mehran Aram on Sat, Sep 14, 2019 @ 08:09 AM

Lawmakers in California last week approved a statewide limit on annual rent increases for most tenants. This sweeping mandate is the latest step to curb rapidly rising rent prices in the State. Specifically, the new law, which would become retroactively effective as of March this year, caps annual rent price hikes to 5 percent after inflation.

The bill, as of this writing, will head to Governor Gavin Newsom’s desk where he is expected to sign it into law. He has made the housing affordability crisis in California a top priority of his administration.

California voters rejected a similar ballot initiative last year that would have allowed cities to impose more strict local rent caps.

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: inflation, Mortgage rates, Housing Affordability, Rent Control, Gavin Newsom, Governor Gavin Newsom, California Rent Prices, Golden State, Rent Hikes, California Rent Control, Rent Prices, Rent Cap, california voters

Home construction rates show no sign of improvement

Posted by Mehran Aram on Fri, Sep 13, 2019 @ 11:09 AM

The national home ownership rate, property values and sales are all elements of the housing market that have either returned to pre-recession levels or are making strides in that direction. Despite this, the rate at which new homes are being built in the U.S. are far from a full recovery. In fact, a new analysis of market trends shows that the depressed construction rates may continue to linger for quite some time.

According to Zillow, housing starts are predicted to remain below historical averages through 2022 or later. Only one-in-five panelists in a survey expect single-family home starts to return to one million – a benchmark that has not been reached since 2007. More than 25 percent said it may happen by 2021 and 54 percent believe it will be at least another three years or more.

The high price of buildable land, raw materials and labor have plagued the residential construction industry for years, leading to the lowest inventory levels this century.

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: Zillow, homeownership, single family homes, Housing Starts, Mortgage rates, Homeownership Rate, Home Construction

Trump administration shakes up housing market

Posted by Mehran Aram on Wed, Sep 11, 2019 @ 06:09 AM

The Trump administration announced last week a sweeping new plan that would revamp the housing market in the U.S. with 50 new proposals aimed at shrinking the government’s role in the real estate industry.

Among the most notable changes is a proposal to end the decade-long government control Fannie Mae and Freddie Mac which back over half of the nation’s mortgages. The two mortgage giants buy mortgages from lenders, package them into securities and sell them to investors. The government put them under conservatorship 11 years ago amid the financial crisis.

The changes are unlikely to happen quickly however as they require approved by a divided Congress.

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: mortgages, real estate, Fannie Mae, Freddie Mac, Mortgage Market, Mortgage rates, Donald Trump, Trump Administration

Poll: Home buyers have no regrets

Posted by Mehran Aram on Wed, Sep 11, 2019 @ 05:09 AM

Despite high prices, becoming a homeowner may still pay off. According to new data from Bank of America, 93 percent of renters who transitioned to homeownership have no regrets about their decision. They report being happier than they were leasing and 80 percent said they would never go back.

A whopping 88 percent stated that buying a home was the “best decision they ever made” and 79 percent of respondents say that owning has changed them for the better.

The data supports other studies that show that long-term, homeownership is more affordable that renting and is one of the primary ways American’s build wealth.

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: home buying, homeownership, Mortgage rates, Renters, home buyers, Homeowner, Housing Poll, Bank of America

New home sales increase in July

Posted by Mehran Aram on Tue, Sep 10, 2019 @ 05:09 AM

Sales for newly built homes outpaced sales for existing homes in Southern California in July according to a new report. New home sales were 13 percent higher during the month than they were at the same time last year according to CoreLogic. In comparison, existing home sales increased just three percent during the same period. In total, 1,719 newly built homes were purchased across Southern California in July.

The demand for new homes doesn’t appear to have dwindled since last year despite prices rising. The price for a new home in San Diego County rose 21 percent over overall home prices in the region since last summer.

The median price tag for a newly constructed home in San Diego as of July: $701,250.

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, Housing Market, Southern California, existing home sales, new homes, new home sales, Mortgage rates, San Diego Housing Market, Existing Homes, San Diego Median Home Price

Home buyer deal breakers

Posted by Mehran Aram on Mon, Sep 9, 2019 @ 09:09 AM

Just give the handle a jiggle. That window doesn’t open. The gate doesn’t latch. These not uncommon phrases may be a part of your everyday living but when selling your home, they can be deal breakers. Studies have shown that its these “nickel and dime” issues that really peeve home buyers, especially if they are not told about them ahead of time.

These small things, like a toilet that runs, a stuck front door or a wobbly ceiling fan are things long time homeowners have just learned to live with but experts warn that if home inspectors don’t catch them, they should be disclosed so as to not catch the buyer off guard.

To ensure a swift and smooth home sale transaction, agents advise sellers to make these minor repairs. Although they may not cost very much or be noticeable right away, they can go a long way when listing your home for sale. Homeowners are also like to save money by making the repair themselves than waiting for the buyer to ask for a credit in escrow at twice the price.

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 buying, Mortgage rates, home selling, Realtors, home buyers, Home Sellers, Home Listings, Real Estate Agent

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