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San Diego home building plummets

Posted by Mehran Aram on Tue, Jun 18, 2019 @ 05:06 AM

A significant decline in the number of apartments being built in San Diego has dragged down new dwelling construction in the County a whopping 58 percent during the first few months of 2019. The Real Estate Research Council of Southern California reported last week that San Diego experienced the biggest drop in new construction permits among all Southern California counties.

Multi-unit dwelling permits declined the most, with a 70 percent drop on a year-over-year basis. This is a reversal of the past couple of years when apartment building outnumbered single-family construction.

San Diego had been making significant strides over the last several months in increasing home inventory levels which have been critically low. These latest figures are a setback to that momentum.

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, Southern California, Mortgage rates, San Diego Housing Market, Construction Permits, San Diego Housing, New Construction Permits, home inventory

Home building on the rise

Posted by Mehran Aram on Sun, May 19, 2019 @ 07:05 AM

Single-family home construction increased in the U.S. in April, driving housing starts up. Overall housing starts climbed 5.7 percent over the last month according to data from the Department of Commerce. The volume of construction permits also increased, a signal that housing starts in the coming months will be positive as well.

Low unemployment, a strong economy and lower mortgage rates have produced robust buyer-demand for housing, but rising material costs and labor shortages have hindered growth over the past year. These latest numbers suggest that home builders are not being deterred by these less than favorable conditions.

Experts predict that should demand continue to remain high, housing starts in particular may show resilience even if the housing market experiences a broader slowdown.

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: Home Builders, single family homes, Housing Starts, U.S. Department of Commerce, Mortgage rates, Home Building, Low Unemployment, Construction Permits, Home Construction, Strong Economy, Department of Commerce