ARAMCO Report - The Mother of ALL Mortgage Blogs!

Mortgage rates in free-fall

Posted by Mehran Aram on Sun, Mar 24, 2019 @ 10:03 AM

Concerns about the economy both domestically and abroad are driving down mortgage rates. In new data released last week by mortgage giant Freddie Mac, the 30-year fixed-rate mortgage rates are now at a 52-week low. Cheaper mortgages could be a shot in the arm to the housing market after several months of declining sales and price growth.

Further driving rates down was an announcement by the Federal Reserve that it will hold rates steady and will likely not increase rates for the rest of the year. Currently, Fed Funds futures place the probability of a rate cut by the end of the year as high as 51 percent. The news caused bond yields to stumble. Mortgage rates are closely linked to the yield on the 10-year Treasury bond.

Currently, rates are significantly lower than they were last fall and experts predict that there are more drops to come. 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: U.S. economy, Bond yields, Freddie Mac, Federal Reserve, Mortgage rates, Fed Funds futures

ARAMCO Report - Tuesday April 14, 2015

Posted by The Aramco Group on Tue, Apr 14, 2015 @ 15:04 PM

How retail spending can relate to mortgages

The Commerce Department reported that American retail sales rose 0.9 percent (seasonally adjusted) in March 2015 from the previous month due to strong auto sales. This is the strongest gain in the last calendar year. Retail sales levels can reflect two things: the financial liquidity and confidence of the end consumer, and the stabilization of the prices that manufacturers charge. Both types of information are good barometers for the general economy, and are parts of what The Fed will base its decision on when it decides to raise interest rates. There are markets for Fed futures, which are financial contracts that let investors indirectly and fluidly price when they expect the Fed will raise interest rates. The market currently prices the first interest rate hike in December of this year.  Those interest rates, when they increase, will have an immediate correlation to mortgage rates.  The Fannie Mae 30-year 3 percent bond’s yields stayed flat yesterday, and so did average mortgage rates. Conforming no point 30-year fixed rates averaged 3.75 percent while 15-year rates averaged 3.0 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: mortgage interest rates, Fed, 30 year fixed rates, Bond yields, mortgage, Federal Reserve, Mortgage Market, retail sales, Mortgage rates

ARAMCO Report - Tuesday February 17, 2015

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

Following the biggest 2 week sell off in the U.S. bond market, U.S. treasuries sold off again on Tuesday. The 10 year note yield which had hit a 21 month low on February 2nd, rose to 2.14%, the highest since the end of 2014. Mortgage rates also rose, with conforming no point 30 year fixed rates averaging 3 7/8ths and 15 year rates closer to 3 1/4%. Meanwhile U.S. homebuilders sentiment fell for a second straight month while most builders still view market conditions as favorable. And now for something completely different… It’s hard to believe that there is actually a plant that is able to simultaneously produce both tomatoes and potatoes. Its cleverly named the “Ketchup ‘n Fries” plant.

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: 30 year fixed rates, Bond yields, sell-off, U.S. bonds, Home Builders, Tomatoes, Potatoes, Mortgage rates

ARAMCO Report - Friday January 30, 2015

Posted by The Aramco Group on Mon, Feb 2, 2015 @ 11:02 AM

Another big sell off in stocks sparked a flight to safety rally in bonds pushing the yield on 30 year treasuries to an all-time low of 2.243%. The benchmark 10 year note yield recorded its largest one month decline since mid-2011 now at 1.673%. The catalyst behind the move was a much lower than expected 2.6% increase in 4th quarter GDP. Conforming no point 30 year fixed mortgage rates average 3 5/8ths with 15 year rates closer to 2 7/8ths.

And now for something completely different…  Did you know that there is only one ATM machine in the world that is capable of giving instructions in Latin. This one and only Latin speaking ATM machine is in Vatican City.

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: GDP, bond buying, Stocks, Latin, Bond yields, sell-off, ATM, Vatican City

ARAMCO Report -Monday September 29, 2014

Posted by Mehran Aram on Mon, Sep 29, 2014 @ 17:09 PM

August pending home sales were down 1% from July, further evidence of an uneven housing recovery. This according to the National Association of Realtors which regularly reports on home purchases under contract which have not closed escrow yet. Bond yields were slightly lower on this news and other data reflecting tame inflation and in reaction to recent weakness in stocks. 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 since 1945 all British tanks come equipped with tea making facilities?

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, and now for something completely different, home purchase, bonds, tanks, tea, 30 year fixed rates, Bond yields, National Association of Realtors, Housing, August, British, escrow

ARAMCO Report -Friday September 19, 2014

Posted by Mehran Aram on Fri, Sep 19, 2014 @ 17:09 PM

According to 2nd quarter data from the Federal Reserve, growth in household owners’ equity rose by a more modest 1.7%, but up $4.7 trillion from the trough during the housing crisis equating to roughly $53,000 per property. At this pace it could take until early 2018 to fully recover all the equity. Meanwhile following a drop in bond yields on Friday, conforming no point 30 year fixed mortgage rates still average 4 1/4% with 15 year rates closer to 3 3/8ths.

And now for something completely different: In 1912, an orphanage in Paris held a raffle to raise money for a hospital. Hard to believe, but the raffle prizes were live babies!

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, and now for something completely different, home purchase, bonds, 30 year fixed rates, Bond yields, equity, Federal Reserve, Paris, refinance, Mortgage rates