ARAMCO Report - The Mother of ALL Mortgage Blogs!

Mortgage rates surge amid strong economic news

Posted by The Aramco Group on Fri, Oct 5, 2018 @ 14:10 PM

This was the worst week for mortgage rates in nearly two years with the average 30-year fixed rate climbing an eighth of a percentage point. New data shows the U.S. economy is firing on all cylinders including a new North American trade deal announced by the Trump Administration and a strong jobs report. The Federal Reserve also signaled its favorable view of the economy last week by raising short-term interest rates.

Investors are trading based on the idea that the economy is bound to remain strong and are selling off Treasury bonds in favor for a bullish stock market. Mortgage rates are closely linked to the yield on the 10-year note, as yields rise, home loan rates follow suit. Bond yields soared to multiyear highs this week, particularly after a strong jobs report released on Friday showing the unemployment rate is at a 49-year low.

While compared to historical averages mortgage rates are relatively low, they are currently near a 7-year high. Conforming no-point 30-year fixed mortgage rates are averaging 4.75 percent, 15-year rates are near 4.25 percent and the 5-year ARM is averaging 4.15 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: Interest Rates, bond market, U.S. economy, Federal Reserve, Mortgage rates, Donald Trump, Trump Administration

ARAMCO Report - Thursday March 26, 2015

Posted by The Aramco Group on Thu, Mar 26, 2015 @ 14:03 PM

Investors looked to the security of U.S. government bonds after the Commerce Department reported a weaker than expected uptick in GDP in the fourth quarter. T Bills strengthened for the first time in three days. Economists at the U.S. Department of Commerce expected that the country’s GDP to grew at 2.4% over the whole of 2014, but downgraded their estimate to 2.2 percent. The difference of 0.2 percent of the U.S.’s $16.7 trillion GDP (2013 estimate) is about $33.4 billion less than expected. With the bond market closing in positive territory, conforming no point 30-year fixed rates remain at around 3.75 percent while 15-year rates are averaging 3.125 percent. 

For more information on a home purchase, refinance, or a reverse mortgage, visit our website at Aramco.Biz or call me at (877) 700-0942. This is Mehran Aram with today's ARAMCO Report.

Ask Mehran Aram

Topics: bonds, Treasury, bond market, GDP, bond buying, 30 year fixed rates

ARAMCO Report - Wednesday March 25, 2015

Posted by The Aramco Group on Thu, Mar 26, 2015 @ 13:03 PM

The US Department of Labor provided news of a healthy U.S. labor market in its most recent job report: layoffs are currently rare and initial unemployment claims are at a 15-year low. This means that businesses are not concerned with the economy slowing down in the first quarter of 2015, but numerous instabilities prompted an unusual dual sell-off in both stocks and bonds over the last two days. More volatile securities like stocks and less volatile securities like bonds often respond to market news in opposite directions. Simultaneous decreases, even slight ones like the current one, signify divestment from the market rather than the reorganization of portfolios. Mortgage bonds decreased slightly in this downwards trend, which pushed average mortgage rates slightly higher. Conforming no point 30 year fixed rates continue to average approximately 3.75 percent but 15-year rates are now averaging 3.125%. 

For more information on a home purchase, refinance, or a reverse mortgage, visit our website at Aramco.Biz or call me at (877) 700-0942. This is Mehran Aram with today's ARAMCO Report.

Ask Mehran Aram

Topics: U.S. Department of Labor, bond market, labor market, 30 year fixed rates, jobs, labor, Mortgage rates, stock prices, jobless

ARAMCO Report - Friday February 6, 2015

Posted by The Aramco Group on Tue, Feb 24, 2015 @ 11:02 AM

Friday was a rough day for the bond market and mortgage rates which rose by 1/8th of a %. A much stronger than expected employment report was the major catalyst for the move. In January the U.S. economy created a higher than forecast 257,000 jobs while the previous 2 months data was also revised upward by 147,000 renewing fears of earlier Fed rate hikes. Conforming no point 30 year fixed mortgage rates now average 3 3/4ths with 15 year rates closer to 3%. And now for something completely different. Here is a good one: The Emperor penguin can dive to a depth of 1,850 feet. That’s deeper than the operational range of most naval submarines!

For more information on a home purchase, refinance, or a reverse mortgage, visit our website at Aramco.Biz or call me at (877) 700-0942. This is Mehran Aram with today's ARAMCO Report.

Ask Mehran Aram

Topics: bond market, 30 year fixed rates, employment, Mortgage rates

ARAMCO Report -Monday September 22, 2014

Posted by Mehran Aram on Mon, Sep 22, 2014 @ 17:09 PM

Weaker than expected economic data and concerns about China’s economic outlook was supportive of the bond market. Existing home sales fell 1.8% in August and year over year were down 5.3%. And the Chicago Fed’s National Activity index also fell in August. Meanwhile higher level of student debt is expected to reduce U.S. home sales by around 8% this year. Conforming no point 30 year fixed mortgage rates average 4 1/4% with 15 year rates closer to 3 3/8ths.

And now for something completely different:Did you know that a book borrowed by George Washington in 1789 was marked as overdue for 221 years? It was returned in 2010 and the $300,000 in late fees were waived.

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.

Ask Mehran Aram

Topics: home sales, Reverse Mortgage, Aramco Report, home purchase, George Washington, bond market, China, 30 year fixed rates, Library, Chicago Fed's National Activity, economic data, refinance

ARAMCO Report - Wednesday August 27, 2014

Posted by Mehran Aram on Wed, Aug 27, 2014 @ 17:08 PM

Mortgage application activity, rose nearly 3% last week while loan requests for home purchases also rose by about 2.5%. While the latter statistic is an indication of a healthy level of home sales, the Congressional Budget Office showed little optimism towards the U.S. economy as a whole by lowering its yearly GDP growth projection from 3.1% to 1.5%. Meanwhile in the bond market a lack of significant news has kept 30-year fixed rates averaging 4.125% and 15-year rates closer to 3.25%.

And now for something, completely different: In addition to the charisma and energy John F. Kennedy brought to the White House, he is also remembered as the only U.S. President to be awarded a Pulitzer Prize for his book, “Profiles in Courage.”

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.

Ask Mehran Aram

Topics: home sales, Aramco Report, home purchase, White House, bond market, JFK, Congressional Budget Office, 30 year fixed rates, Loan, Mortgage application, U.S. President, Pulitzer Prize, economy, U.S.

ARAMCO Report - Monday July 21, 2014

Posted by Mehran Aram on Mon, Jul 21, 2014 @ 17:07 PM

Last week the bond market rallied in reaction to the Malaysian airplane being shot down in Ukraine and the Israeli offensive in Gaza. Historically such geopolitical tensions spark a flight to safety rally in U.S. Treasuries which in turn keep mortgage rates low. Conforming no point 30 year fixed rates average 4 1/8th with 15 year rates closer to 3 1/8th. Meanwhile lending standards are loosening up a bit and the FHA is offering discounts to homebuyers who go thru counseling.

And now for something, completely different: Did you know that the typical lead pencil can draw a line that’s 35 miles long? The folks who come up with such data much have a lot of time on their hands!

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

This is Mehran Aram with today's ARAMCO Report.

Ask Mehran Aram

Topics: Aramco Report, and now for something completely different, bond market, 30 year fixed rates, homebuyers, FHA, refinance, Gaza

ARAMCO Report - Monday July 7, 2014

Posted by Mehran Aram on Mon, Jul 7, 2014 @ 17:07 PM

Not a whole lot of movement in the bond market, leaving mortgage rates unchanged. Conforming no point 30 year fixed rates average 4 1/8th with 15 year rates closer to 3 1/8th, both at their lowest level of the year. Meanwhile according to the National Association of Realtors, home price appreciation is slowing with the median expected price increase this year at 4%. In states such as California and 5 other states appreciation rates are expected to be in the 5 to 7% range.

And now for something completely different: Did you know that Tug of War was a team event in the summer Olympics continuously from the year 1900 to 1920? The U.S. won all three medals in 1904!

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.

Ask Mehran Aram

Topics: Reverse Mortgage, Aramco Report, home purchase, Olympic Games, California, home ownership, bond market, 30 year fixed rates, National Association of Realtors, Olympic

ARAMCO Report - Monday June 30, 2014

Posted by Mehran Aram on Mon, Jun 30, 2014 @ 17:06 PM

Despite a larger than expected 6.1% jump in May pending home sales and a decent purchasing manager’s index from Chicago, the bond market and mortgage rates were mostly unchanged. Conforming no point 30 year fixed rates average 4 1/4% with 15 year rates closer to 3 1/4. Meanwhile some good news for renters who wish to become homeowners, as Experian and Transunion will now incorporate their rental payment history in computing their credit scores.

And now for something completely different: Did you know that Camden, New Jersey is home of the world’s first drive-in-movie theatre? It opened in June of 1933!

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.

Ask Mehran Aram

Topics: Aramco Report, and now for something completely different, home purchase, Camden, New Jersey, Drive-In, homeowners, bond market, 30 year fixed rates, rental, Movie Theatre, Mortgage rates

ARAMCO Report - Friday June 27, 2014

Posted by Mehran Aram on Fri, Jun 27, 2014 @ 17:06 PM

According to a recent study from Harvard University, homeownership rates have declined for nine years straight and are currently at their lowest levels since 1995. An improved jobs market, looser underwriting standards, and rising home values will hopefully create a sense of urgency and reverse this trend in the years to come. Meanwhile, continuous signs of a lackluster economic recovery have pushed stocks lower and strengthened the bond market, leaving 30-year fixed rates at around 4.25% and 15-year rates averaging 3.25%

And now for something completely different: Never say no to a warm embrace. A 20-second hug has been proven to increase levels of oxytocin, an important peptide hormone that reduces blood pressure and in turn decreases your risk of heart disease.

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.

Ask Mehran Aram

Topics: Reverse Mortgage, Aramco Report, and now for something completely different, home purchase, San Diego, hugs, Housing Market, bond market, Harvard University, embrace, oxytocin, heart disease, Stocks, 30 year fixed rates, Harvard, homeownership, stock market, Mortgage rates