ARAMCO Report - The Mother of ALL Mortgage Blogs!

Wage struggles for Calif. renters

Posted by Mehran Aram on Sun, Jun 30, 2019 @ 08:06 AM

A worker in California will need to make nearly $35 per hour to afford to rent a two-bedroom home in the State according to a new report. This amount is three-times the current minimum wage and makes California one of the most unaffordable rental markets in the nation.

A report released by The National Low Income Housing Coalition shows that California ranked second in hourly wages required to afford median rent prices. Hawaii took the top spot. The rankings were based on the cost of a two-bedroom dwelling based on the concept that living costs should take up no more than 30 percent of monthly income.

As it is with overall housing costs, San Diego costs more for renters. A resident would have to make nearly $40 per hour to afford rent prices. The average renter in San Diego makes $20.78 per hour of work.

Today, conforming no-point 30-year fixed mortgage rates are averaging 3.875 percent and 15-year rates are near 3.375 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: San Diego County, San Diego, California, Wages, Mortgage rates, San Diego Housing Market, rental market, Wage Struggles, Minimum Wage, National Low Income Housing Coalition, Hourly Wages

Calif. home prices reach new peak

Posted by Mehran Aram on Sat, Jun 22, 2019 @ 07:06 AM

The median home price in California reached another peak in May according to the California Association of Realtors. This marks the second consecutive month in which home prices in the Golden State reached a new high. Prices reached a new-all time high in May - beating the record the prior month – as the median home price climbed to $611,190. This is up 1.4 percent from April’s $602,920 and 1.7 percent higher than the $600,860 median in May 2018.

In San Diego, the median sold price of existing single-family homes was $650,000, up on both a monthly and yearly basis.

Home sales in May also improved over April as the summer home buying season kicked into high gear. But the affordability crunch brought on by the record-high home prices were reflected in year-over-year sales which were down 0.6 percent from May 2018.

Today, conforming no-point 30-year fixed mortgage rates are averaging 3.875 percent and 15-year rates are near 3.375 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: home sales, California, California Association of Realtors, Single Family Home, Mortgage rates, California Housing Market, San Diego Housing Market, Existing Homes, San Diego Home Prices, California Home Prices, California Median Home Price, Golden State

A uniquely California problem: too many mansions

Posted by Mehran Aram on Fri, Jun 7, 2019 @ 16:06 PM

Southern California is known for its streets lined with palm trees, beaches and glitz and glam. This includes homes that are so large, they can only be described as mega-mansions. However, a recent report from The Wall Street Journal shows that there is a growing inventory of these palatial homes and not enough buyers.

In Los Angeles alone, there are currently 50 ultra high-end homes under construction and are expected to cost anywhere from $35.5 million to $500 million. And in typical Hollywood fashion, real estate agents are ditching open houses and instead inviting potential buyers to lavish themed parties to check out these grand estates.

The influx in mega-mansions began several years ago where there was increasing interest from foreign buyers for such homes, but builders are seeing that domestic demand is far less, leaving them with a surplus of superfluous properties.

Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 3.875 percent and 15-year rates are near 3.375 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, Housing Inventory, California Housing Market, Southern California Housing Market, Mega Mansions, SoCal

California rent control battle rages on

Posted by Mehran Aram on Mon, May 6, 2019 @ 05:05 AM

A new effort is underway in the state capitol to prohibit landlords from raising rent by more than 5 percent above the Consumer Price Index. The bill passed the Assembly's key Housing and Community Development Committee by a 6-1 vote last week.

Those opposed to the legislation say that Bill 1482 could disrupt the natural market and financially hurt property owners. California voters rejected Proposition 10 last November which would have implemented statewide rent control measures.

Gov. Gavin Newsom has stated that he favors measures to control rent hikes which he believes would help quell a housing affordability crisis in the State.

Meanwhile, 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: California, Mortgage rates, Housing Affordability, Rent Control, Bill 1482, Housing and Community Development Committee, Gavin Newsom

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