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Mortgage delinquencies spike

Posted by Mehran Aram on Sat, Aug 10, 2019 @ 09:08 AM

Following a record low in May, mortgage delinquencies nationwide shot up 11 percent in June to 3.73 percent. This is the biggest one-month spike in nearly 10 years. However, according to a statement from Black Knight, the abrupt increase may be a fluke related to the calendar.

“The month ended on a Sunday, which means servicing operations are closed on the last two days of the month and cannot process last-minute payments,” Black Knight said. The statement also noted that month’s ending in a Sunday have contributed to nine of the 10 largest single-month delinquency gains in the last seven years.

The June increase follows a record low the prior months when late payments fell to just 3.36 percent of all mortgaged homes. This has contributed to a historic low in foreclosures as well.

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: Housing Market, foreclosures, Black Knight, Mortgage rates, Mortgage Delinquencies, Late Payments

Mortgage delinquencies spike

Posted by Mehran Aram on Fri, Aug 9, 2019 @ 16:08 PM

Following a record low in May, mortgage delinquencies nationwide shot up 11 percent in June to 3.73 percent. This is the biggest one-month spike in nearly 10 years. However, according to a statement from Black Knight, the abrupt increase may be a fluke related to the calendar.

“The month ended on a Sunday, which means servicing operations are closed on the last two days of the month and cannot process last-minute payments,” Black Knight said. The statement also noted that month’s ending in a Sunday have contributed to nine of the 10 largest single-month delinquency gains in the last seven years.

The June increase follows a record low the prior months when late payments fell to just 3.36 percent of all mortgaged homes. This has contributed to a historic low in foreclosures as well.

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: Black Knight, Mortgage rates, U.S. Housing Market, Mortgage Delinquencies

Home affordability improving thanks to low rates

Posted by Mehran Aram on Wed, Aug 7, 2019 @ 06:08 AM

Recent declines in mortgage rates has created millions more potential home buyers. In a new edition of Black Knight’s Mortgage Monitor report, the drop in rates has made home affordability the best it has been in 18 months.

Although home prices continue to increase, less expensive borrowing costs can be an offset. Even small drops in mortgage rates can make a monthly mortgage payment more affordable for home buyers. Black Knight reports that while the average home price has increased by $12,000 since interest rates peaked last November, monthly payments have declined $108 as rates began to retreat.

Lower mortgage rates could spur an increase in home sales as house hunters have more buying power.

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 prices, Interest Rates, Black Knight, Mortgage rates, home affordability, home buyers, Affordability, Borrowing Costs, Monthly Mortgage Payments

Cash-out refinances on the rise

Posted by Mehran Aram on Wed, Apr 17, 2019 @ 06:04 AM

Homeowners in the U.S. are sitting on $5.7 trillion in equity borrowing potential according to Black Knight, a mortgage-data and technology company. This is a record high. When coupled with low mortgage rates, it’s not surprising that cash-out refinances are near their highest levels since 2007. Freddie Mac has previously reported that approximately 8 out of every 10 refinances happening have the homeowner taking cash-out of their home’s equity.

Some experts predicted that cash-out refinances would drop after new federal tax laws eliminated the interest deduction for equity loans unless the money is spent on home improvements that will raise property value. However, any declines due to these changes in tax law have apparently been countered by favorable borrowing rates.

Today, conforming no-point 30-year fixed mortgage rates are averaging 4.125 percent, 15-year rates are near 3.625 percent and the 5-year ARM is averaging 4.00 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 equity, Freddie Mac, Black Knight, Mortgage rates, Property Values, cash out refinance, Homeowner, Federal Tax Laws

ARAMCO Report - Thursday July 3, 2014

Posted by Mehran Aram on Thu, Jul 3, 2014 @ 17:07 PM

A much better than expected June employment report initially pushed bond yields sharply higher, but later in the session half of those losses were recouped. Traders concluded that the report did not show enough economic acceleration to shift the Fed’s monetary policy. Meanwhile according to Black Knight, foreclosure starts unexpectedly jumped by 9.5% in May. Conforming no point 30 year fixed mortgage rates average 4 1/8th with 15 year rates closer to 3 1/8th.

And now for something completely different: Did you know that on April 9, 1993, the Colorado Rockies set a team record for attendance on an Opening Day game? 80,227 fans came to see the first game ever at Mile High Stadium.

For more information on a home purchase, refinance, or a reverse mortgage, visit our website at www.ARAMCO.Biz or call me at (877) 700-0942.

This is Mehran Aram with today's ARAMCO Report.

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Topics: Reverse Mortgage, Aramco Report, and now for something completely different, home purchase, Colorado Rockies, Mile High Stadium, 30 year fixed rates, foreclosures, employment, Black Knight