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Fannie Mae: consumers remain bearish about home buying

Posted by Mehran Aram on Sat, May 11, 2019 @ 06:05 AM

Inventory rates slowly climbing, and mortgage rates hold steady did little to turn consumers on to the idea of buying a home last month. Fannie Mae reported it its Home Purchase Sentiment Index this week that net positive responses to the question about whether now is a good time to buy a home fell 8 points in April. This is a significant 15 percentage points lower than the same month last year.

Despite the negative sentiment about buying a home, consumers seem optimistic that conditions will continue to improve in the coming months. The share of those who believe rates will decline over the next year climbed 12 points over between March and April.

Historically, the net percentage of American’s who feel conditions are ripe to purchase a home increases in the summer months which are traditionally known as “home-buying season”.

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 buying, home purchase, Fannie Mae, Mortgage rates, consumer, Home Purchase Sentiment

Consumer confidence waning

Posted by Mehran Aram on Wed, Nov 14, 2018 @ 05:11 AM

Americans are feeling uneasy about the current state of the housing and economy. Fannie Mae’s latest Home Purchase Sentiment Index fell two points in October to a reading of 85.7. While any readings over 50 indicate positive sentiment, last month’s decline brings the index to its lowest point since last fall.

“After hitting a survey high during the spring home buying season, the HSPI has trended downward, declining in October to its lowest level in a year,” said Doug Duncan, Fannie Mae’s chief economist. “The net share of consumers who said it’s a good time to buy a home is near the second lowest reading in the survey’s history.”

Consumers who report that conditions are prime to sell a home also dropped. Still, when asked about the state of the overall economy, American’s remain positive. The share of consumers who think the economy is on the right track reached a new survey high.

Today, conforming no-point 30-year fixed mortgage rates are averaging 4.875 percent, 15-year rates are near 4.325 percent and the 5-year ARM is averaging 4.325 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: Fannie Mae, Mortgage rates, consumer confidence, consumer

ARAMCO Report - Friday January 16, 2015

Posted by Mehran Aram on Fri, Jan 16, 2015 @ 11:01 AM

In December consumer inflation saw the biggest monthly drop in 6 years thanks to falling gasoline prices. The 4/10ths of a % drop in inflation in December was the largest drop since the end of 2008. But consumer sentiment skyrocketed to an 11 year high pushing stock prices sharply higher on Monday sparking a sell-off in Bonds. Mortgage rates remain at their lowest level since 2013 with conforming no point 30 year rates averaging 3 5/8ths and 15 year rates closer to 3%.

And now for something completely different… Did you know that actor Paul Newman’s food company, Newman’s Own, donates all its profits to charity? Since 1982 the company has donated over $400 million.

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: gasoline, bonds, prices, Paul Newman, Newman's Own, 30 year fixed rates, sell-off, inflation, sentiment, high, pushing, stock prices, consumer

ARAMCO Report -Friday September 26, 2014

Posted by Mehran Aram on Fri, Sep 26, 2014 @ 17:09 PM

A larger than expected 4.6% growth in the 2nd quarter GDP and a rise in consumer confidence gave the stock market a boost on Friday. But it did not spark a selloff in bonds, leaving mortgage rates unchanged. Conforming no point 30 year fixed rates average 4 1/4% with 15 year rates closer to 3 3/8ths. Meanwhile according to Realty Trac, year over year the share of home sales at or below $200,000 was down 9% while sales for over $500,000 rose 23%.

And now for something completely different: Did you know that there are so many restaurants in New York City that you can eat at a different place everyday for 12 years and never visit the same place twice? That’s amazing!!

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, Reverse Mortgage, and now for something completely different, bonds, Realty Trac, GDP, 30 year fixed rates, New York City, Mortgage rates, consumer, restaurants