ARAMCO Report - The Mother of ALL Mortgage Blogs!

Home builder confidence

Posted by Mehran Aram on Thu, Jun 20, 2019 @ 16:06 PM

A slight gain in the confidence levels among home builders in the U.S. last month, was undone by a 2 point decline in June. Rising construction costs have long been cited as the major reason builders have been weary. Confidence levels are measured according to The National Association of Home Builders’ index.

“While demand for single-family homes remains sound, builders continue to report rising development and construction costs,” said NAHB Chairman Greg Ugalde.

In addition to grappling with rising costs, a shortage of skilled labor has also depressed confidence levels among the nation’s home builders. Despite this month’s drop, the index’s component measuring future conditions remains positive with a reading of 70.

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: Construction, Home Builders, single family homes, Mortgage rates, National Association of HomeBuilders, condo, condominium, Home Builder Confidence, Home Construction

Construction spending climbs in February

Posted by Mehran Aram on Wed, Apr 3, 2019 @ 05:04 AM

Following January’s surprising surge of 2.5 percent, U.S. construction spending rose yet again in February, this time by a more modest one percent. According to data released by the U.S. Department of Commerce, total construction spending in February was $1.32 trillion, the highest level since May 2018.

Driving the increases over the past few months was a spike in residential construction spending. The boost in new home building shows an attempt to meet anticipated demand as the spring-home buying season kicks off with falling mortgage rates.

Mortgage rates have dropped nearly a full percentage point since last fall. 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: Construction, U.S. Department of Commerce, Mortgage rates, Home Building, Construction Spending, U.S. Construction

San Diego housing plans could be a game changer

Posted by Mehran Aram on Thu, Feb 28, 2019 @ 05:02 AM

Southern California is not generally known to be pedestrian friendly but law makers in San Diego are looking to change that. Rather than focusing on suburban communities, the City Council is greenlighting plans for more dense urban dwellings that are in close proximity to businesses, making it possible for residents to walk to work.

In his State of the City address in January, San Diego Mayor Kevin Faulconer proposed an aggressive increase in apartment and condominium construction. His agenda is in alignment with plans put forth by California Governor Gavin Newsom who is pushing for localities to remove development restrictions that limit high density housing construction.

Height limits and parking requirements would be lifted on new construction but current city rules that require 10 percent of a project be reserved for low-income families would remain in place.

Meanwhile, 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: Construction, Mortgage rates, San Diego Housing Market, Southern California Housing Market

ARAMCO Report Friday May 1, 2015

Posted by The Aramco Group on Fri, May 1, 2015 @ 15:05 PM

Construction is a soft spot in the Economic recovery

Construction spending fell to a six-month low as outlays on private residential construction declined 0.6 percent in April to an annual rate of $966.6 billion according to the Commerce Department. This contraction was already after a 1.6 percent decline in residential construction spending in March.

The health of the construction sector is important because other parts of the economy do better when it does better. Every dollar spent in construction generates $.86 of spending in other sectors of the economy, and the construction of single-family homes directly impacts home prices across the country.

Home prices in San Diego have risen 4.7 percent from February 2014 to February 2015 according to the S&P Case Shiller Home Price Index. The pace of appreciation could increase once the county enters its peak spring and summer home buying season because of increased seasonal demand but low current housing inventory levels. New homes would have to be constructed to keep supply up with demand. 

Homebuyers and homeowners looking to refinance will find interest rates for conforming no point 30-year fixed mortgages average 3.875 percent while 15-year mortgages average 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: home prices, S&P Case Shiller, inventory, Linkages, 30 year fixed rates, Construction

ARAMCO Report - Monday March 23, 2015

Posted by The Aramco Group on Mon, Mar 23, 2015 @ 15:03 PM

Homebuilding continues to trail pre-recession levels even though the economy is gaining steam and consumer demand for new homes is high. This is according to research by the National Association of Home Builders (NAHB).  The housing collapse following 2008 forced skilled construction workers into other industries, and 67 percent of housing developers reported that labor availability was their top concern in 2015. 57 percent also worried about lot availability. This stands in blunt contrast to 2011 when only 13 percent and 21 percent of builders were concerned about the availability of labor and lots, respectively. There is a bright spot: the percentage of developers concerned that buyers would not qualify for a mortgage has dropped from 67 percent to 45 percent in the last two years. That represents the sector’s growing confidence in the consumer economy that influences the demand for homes.

Conforming no point 30 year fixed mortgage rates average 3.75 percent with 15-year rates averaging 3 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: confidence, economic growth, National Association of Home Builders, Construction, labor, lots, economic data, builders, availability

ARAMCO Report - Monday March 2, 2015

Posted by The Aramco Group on Tue, Mar 3, 2015 @ 09:03 AM

A generally improving U.S. economy once again pushed stock prices higher on Monday, sparking a selloff in bonds, which put upward pressure on mortgage rates. Conforming no point 30 year fixed mortgage rates still average 3 7/8ths with 15 year rates closer to 3 1/8th. Meanwhile the U.S. Department of Commerce reported construction spending for January of 2015, which came in 1.1% below December’s levels, but 1.8% above January of 2014. And now for something completely different… Did you know that according to gaming laws, casinos have to stock a certain minimum amount of cash? How much cash? Enough to cover all the chips on the casino floor!

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, Construction, U.S. Department of Commerce, Mortgage rates, stock prices, Casinos

ARAMCO Report - Tuesday August 19, 2014

Posted by Mehran Aram on Tue, Aug 19, 2014 @ 17:08 PM

According to the U.S. Department of Commerce, construction on new homes jumped by 15.7% in July and reached its highest level in 8 months, further evidence of a recovering housing market. The jump in housing starts exceeded economists’ expectations on Wall Street. Meanwhile the pace of inflation at the consumer level cooled following a sharp increase earlier in the year. Conforming no point 30 year fixed mortgage rates average 4 1/8th with 15 year rates closer to 3 1/4%.

And now for something completely different: Did you know that there is only one type of rock that can float in water? It’s the volcanic rock, also known as pumice!

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 Financial, Aramco Report, and now for something completely different, home purchase, home ownership, Wall street, Floating Rock, Construction, new homes, Pumice, refinance, U.S. Department of Commerce

ARAMCO Report - Friday August 1, 2014

Posted by Mehran Aram on Fri, Aug 1, 2014 @ 17:08 PM

Historically weaker than expected economic data leads to a rally in U.S. bonds and pushes interest rates lower. The July employment report was no exception as the U.S. economy added a smaller than expected 209,000 jobs and the unemployment rate rose to 6.2%. Meanwhile U.S. construction spending also fell 1.8% in June giving the bond market a further boost. Conforming no point 30 year fixed rates average 4 1/4% with 15 year rates closer to 3 1/4.

And now for something completely different:Did you know that the Planters company mascot, Mr. Peanut was created during a contest for schoolchildren in 1916?

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 purchase, Interest Rates, 30 year fixed rates, Construction, employment, U.S. bonds, economic data, Planters, Mr. Peanut

ARAMCO Report - Wednesday July 23, 2014

Posted by Mehran Aram on Wed, Jul 23, 2014 @ 17:07 PM

More good news on housing and the mortgage market as applications for U.S. home mortgages including refinance and purchase transactions rose by 2.4% last week. This according to the mortgage Bankers Association. Meanwhile the national inventory of loans in foreclosure fell by 1.5% last month to its lowest level since May of 2008. And Freddie Mac predicts that new housing construction will increase 14% this year and home sales are expected to accelerate for the rest of this year. 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 Chicago River is the only river in the world that flows backward? 

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, Loans, 30 year fixed rates, foreclosure, Freddie Mac, ARAMCO, Construction, Mortgage Bankers Association, new housing, Chicago River