ARAMCO Report - The Mother of ALL Mortgage Blogs!

Homeowner equity levels still climbing

Posted by Mehran Aram on Sun, Mar 10, 2019 @ 08:03 AM

Homeowners are sitting on near record-levels of equity according to a new report, gaining an average of 8.1 percent in the last year alone. As a result, homeowners have greater access to ready cash in the form of a home equity line of credit (HELOC).

Equity levels climbed $9,700 in 2018 compared to the year before but California residents saw much higher increases. Property owners in the Golden State saw their home equity levels climb an average of $19,600 last year. Nevada led the nation with gains topping $29,400 on average.

The increases in equity could mean an increased number of home equity loans this year, particuarly as interest rates slide.

Today, conforming no-point 30-year fixed mortgage rates are averaging 4.25 percent, 15-year rates are near 3.75 percent and the 5-year ARM is averaging 4.25 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, home equity, Mortgage rates, California Housing Market, Homeowner, Homeowner Equity

Slowdown in home sales felt more acutely on West Coast

Posted by Mehran Aram on Fri, Feb 8, 2019 @ 05:02 AM

January is typically a slower month for home sales and 2019 was no exception. Nationwide, home sales dipped last month but nowhere more than on the West Coast. New data from Redfin shows that the length of time it took for a home to sell increased most in the west.

San Jose saw an average of 45 days from listing to sale in January, up from 12 days during the same period last year. Seattle home spent 47 days on the market – up from 15 in 2018. Portland properties took 50 days to sell, increasing from 28 days. Additionally, Redfin is reporting that 15 percent of home saw a price cut in January.

With homes not selling as quickly, it may be indicative that the West Coast may be shifting to a buyers’ market.

Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 4.375 percent, 15-year rates are near 3.75 percent and the 5-year ARM is averaging 4.25 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, Mortgage rates, California Housing Market, West Coast, Home Listings

Even in challenging market, Calif. renters aspire to homeownership

Posted by Mehran Aram on Mon, Dec 10, 2018 @ 05:12 AM

Despite challenges in affordability and inventory, renters in California still yearn to become homeowners one day. This is according to a new consumer survey released by the California Association of Realtors last week. The survey found that approximately half of California's renters rated homeownership as very important or extremely important and that four out of five renters want to own a home in the future.

Respondents to the survey see the financial benefits of homeownership as well with 21 percent saying homeownership is a good long-term investment.

Studies of renter demographics show that renters in southern California spend upwards of half of their monthly income on rent suggesting that even in tough market conditions, homeownership may still be more economical than renting.

Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 4.75 percent, 15-year rates are near 4.125 percent and the 5-year ARM is averaging 4.375 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, Mortgage rates, Renters, rental market

California housing affordability crunch eases slightly

Posted by Mehran Aram on Thu, Nov 29, 2018 @ 05:11 AM

Flat home prices and stable interest rates helped make housing more affordable in the Golden State, says the California Association of Realtors. The trade group reported this week that the percentage of home buyers who could afford to purchase a median-priced existing single-family home in California in the third-quarter climbed one percentage point to 27 percent in the second quarter of 2018.

Based on the current median home price of $588,530, buyers would need an annual income of $125,540 to qualify for most conventional loan products. Should home price appreciation continue to slow, and the strong economy continue to result in rising wages, the affordability factor should see more improvements.

Today, conforming no-point 30-year fixed mortgage rates are averaging 4.875 percent, 15-year rates are near 4.25 percent and the 5-year ARM is averaging 4.5 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, homebuyers, California Association of Realtors, Mortgage rates, home affordability, Conventional Loans

Cash-out refinances at 11-year high

Posted by Mehran Aram on Wed, Nov 28, 2018 @ 16:11 PM

8 out of every 10 refinances happening in the U.S. are cash-out refinances according to new data. This is the highest volume of American’s choosing a cash-out option during the refinancing process since 2007. This is according to mortgage giant Freddie Mac’s data for the third quarter.

The report shows that a little over 88 percent of borrowers who refinances in Q3 elected a cash-extraction, totaling $14.6 billion in liquidated equity. This is down from $15.8 billion in Q2, likely due to a slow-down in refinance activity amid higher mortgage rates.

Cash-out refinances are particularly popular in California, the nations’ highest concentration of homeowner equity. Today, conforming no-point 30-year fixed mortgage rates are averaging 4.875 percent, 15-year rates are near 4.25 percent and the 5-year ARM is averaging 4.5 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, homeowners, California, Freddie Mac, Mortgage rates, cash out refinance

California voters to decide on rent control measure

Posted by The Aramco Group on Sun, Oct 7, 2018 @ 09:10 AM

The rate at which rents are rising in California is unprecedented. More than half the state’s renters are spending 30 percent or more of their monthly income on rent according to the U.S. census bureau. Because of this predicament, organizers collected enough signatures earlier in the year to ensure that Proposition 10 is put before voters. The ballot measure would allow cities and counties across the state to expand rent control,

Supporters of the initiative say it will offer relief for renters and protect them against unreasonable or exorbitant rent increases. Opponents, on the other hand, claim it could lower demand for housing and even prevent owners from setting rent prices on rooms in their own homes.

While San Diego does not currently have any local rent control laws in place, other California cities do. The passage of Proposition 10 would give cities the discretion to expand rent control locally.

Today, 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: San Diego, census bureau, California, Renters, Rent Control, Proposition 10

ARAMCO Report - Tuesday May 19, 2015

Posted by The Aramco Group on Tue, May 19, 2015 @ 18:05 PM

Housing starts increased across the U.S. in April

The seasonally-adjusted annualized rate for housing starts in the U.S. increased 20.2 percent in April compared to March’s forecast (1,135,000 from 1,038,000) according to the United States Census.

This is optimistic news for the U.S. housing economy, which had been hit in Q1 by a harsh winter and deflating economic reports from other sectors. 

Californians may have even more to celebrate as the annualized rate for housing starts in the Western Region went up 39 percent over the same time period. While the California Homebuilding Foundation has not yet published California specific statistics about housing starts for April, California has represented approx. 39 percent of total housing permits in the region in Q1 2015 therefore it is reasonable to presume California builders as well.

This may be good news to potential home buyers and home sellers in California that were concerned about not being able to enter the market before interest rates went up later this year.

Potential homebuyers will find conforming no point 30-year fixed rates average 3.875 percent while 15-year rates average 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: California, inventory, 30 year fixed rates, Housing, Housing Starts

ARAMCO Report - Tuesday May 5, 2015

Posted by The Aramco Group on Tue, May 5, 2015 @ 15:05 PM

Home Prices Should Go Up for Rest of 2015

 

The prices for detached single family homes in San Diego went up 6.03 percent between March 2014 and March 2015, according to the Greater San Diego Association of Realtors.

Statewide prices in California went up 7.2 percent, and national prices went up 5.6 percent over the same time period according to the California Association of Realtors and CoreLogic’s Home Price Index respectively.

Home prices in twenty-seven states and the District of Colombia are within 10 percent of historical peaks for prices in their territories, but California is not one of them. California’s median home price of $440,000 is still -18.2 percent of its peak of $538,000 registered in May 2006.

However the CEO of CoreLogic said, “All signs are pointing toward continued price appreciation [nationally] throughout 2015.”

Prices are being driven upwards due to limited housing inventories across the country during a time with low mortgage rates and improving consumer confidence.

Those looking to sell their home and then purchase a new one will find mortgage rates near an all-time low. Conforming no point 30-year fixed mortgages averaging 3.875 percent while 15-year mortgages averaging 3.215 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: San Diego County, home prices, San Diego, California, CoreLogic, 30 year fixed rates, California Association of Realtors, Greater San Diego Association of Realtors, National Association of Realtors, home values, home selling, National

ARAMCO Report - Wednesday April 22, 2015

Posted by The Aramco Group on Wed, Apr 22, 2015 @ 14:04 PM

California’s Home Buying Season Gets Started         

Competed sales for single-family homes and condominiums ratcheted up an impressive 33.1 percent in March 2015 compared to the month before. Total sales went from 24,031 completed in February to 31,989 completed in March. That is the largest March increase in three years, and is an 8.8 percent rise in completed home sales compared to March 2014, according to Property Radar.       

Property Radar attributes this spring season kick-off to “pent-up demand, mild winter weather, and attractive interest rates”.

This increase marks the end of winter sales levels: sales in January and February 2015 increased only 6.0 percent—moving from 22,659 to 24,031—compared to the 33.1% rise between February and March.

California median single-family home prices also increased 4.8 percent, or $18,000, from $375,000 in February 2015 to $393,000 in March. Prices for the same type of homes in San Diego did not rise as much: up 0.6 percent from $498,000 in February to $501,000 in March according to Zillow.

Conforming no point 30-year mortgage rates average 3.75 percent while 15-year rates average 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: home sales, home prices, San Diego, California, Spring Homebuying Season, Appreciation, Price

ARAMCO Report - Monday April 20, 2015

Posted by The Aramco Group on Mon, Apr 20, 2015 @ 02:04 AM

Drought may create seller’s market in San Diego

Uncertainty about water policy and the ability to obtain water connections for new developments could be stopping some builders from creating new homes in the western U.S., according to the National Association of Home Builders. Housing starts in the West fell for the third straight month in March 2015, down 19 percent, to an annualized rate of 201,000.

Only 278 permits for new single-family homes were granted in San Diego County in February 2015 — the most recent month for which there are official statistics.

Home sales in San Diego County are up however, according to CoreLogic. Last month 3,467 real-estate transactions closed in the county, a 13.4 percent jump from March 2014. Therefore existing homes are selling faster than new homes are being built.

San Diego County had less than a two-month supply of residential listings at current sales rates in March 2015. Historically, less than a three-month supply of listings could indicate a seller’s market.

If the drought is indeed the cause of builders’ reticence to build new homes, then the seller’s market might persist into the future. 

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: San Diego County, water, Drought, home starts, Seller's Market, California, Housing Market, CoreLogic, West, National Association of Home Builders