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Consumer confidence in housing market at record high

Posted by Mehran Aram on Tue, Aug 13, 2019 @ 06:08 AM

Low mortgage rates and unemployment figures in July helped boost consumer confidence to the highest levels ever record. According to Fannie Mae’s monthly index, “confidence about not losing job” and “mortgage rates will go down” rose significantly.

Although home buyers continue to battle against rising prices and low inventory, particularly for entry-level homes, mortgage rates dropping last month helped boost confidence that the future of the housing market would remain strong.

More consumers reported in July’s survey that now is a good time to buy a home and a growing number of respondents believe that home values will continue to rise over the next year.

Today, conforming no-point 30-year fixed mortgage rates are averaging 3.625 percent and 15-year rates are near 3.125 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: Housing Market, Fannie Mae, Mortgage rates, consumer confidence, home buyers, U.S. Housing Market, home inventory

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 - Wednesday May 27, 2015

Posted by The Aramco Group on Wed, May 27, 2015 @ 22:05 PM

Consumer confidence grows and home prices still on the rise

Consumers revised their assessment of the economy, and were optimistic in May despite their dimmer view in April. According to the Conference Board, a private research group, households had expressed better attitudes towards current economic conditions, but the same group still had mixed views about the economy’s current labor markets in May.

Confidence measured in May might have rolled over from increased demand for new homes in April. Sales of new single-family houses were up 26.1 percent in April 2015 compared to sales figures from April 2014. The Census Bureau estimates that the seasonally adjusted annual sales rate increased to 517,000 even though it had momentarily dropped down to 481,000 in March.

Prices for existing homes in San Diego continued to appreciate steadily in March According to the S&P Case Shiller Price Index released 5/26/15. The index measured that single family-home prices in the resale market were selling for about 4.8 percent more, on average, than they were 12 months before.

People looking to purchase a home or refinance their mortgage will find that conforming no point 30-year mortgage 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.

Topics: home sales, home prices, The Conference Board, Consumer Confidence Index, 30 year fixed rates, consumer confidence

ARAMCO Report Friday April 17, 2015

Posted by The Aramco Group on Fri, Apr 17, 2015 @ 15:04 PM

Consumer optimism rebounded in early April according to the preliminary findings in the University of Michigan’s April Sentiment Index. Index scores increased to 95.9 from 93.0 at the end of March. The current consumer optimism score is the second highest reading since 2007, and the average score during the last five months has been higher than anytime since may 2004. Multi-month trends like that are more important than one-month spikes.

Meanwhile, Fannie Mae and Freddie Mac will make a controversial move Friday by directing lenders to cut mortgage fees for riskier borrowers. This is an attempt to open up credit to otherwise qualified borrowers that can make monthly payments, but that need assistance affording initial fees. The agencies will attempt to make it revenue neutral by raising fees on some borrowers, such as those borrowing for investment properties. While advocated by some, this may yet upset some politicians that do not wish to subvert incentives on creditworthiness.

Conforming no point 30-year fixed rates averaged 3.75 percent on Friday while 15-year rates averaged 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: Consumer Confidence Index, 30 year fixed rates, Fannie Mae, Freddie Mac, University of Michigan, consumer confidence

ARAMCO Report - Tuesday April 7, 2015

Posted by The Aramco Group on Tue, Apr 7, 2015 @ 15:04 PM

Potential homebuyers are less likely commit to buying a home according Fannie Mae’s National Housing Survey. The number of respondents who would buy a home if they were to move went down five percentage points to 60 percent — an all-time low for the survey. These month-over-month decreases in homebuyer optimism, from February to March 2015, seem to be driven by similarly decreased expectations that personal incomes are on the rise. The share of people reporting that they thought that their incomes would “get better” in the next 12 months was 41 percent in March, 2015, down 7 percent from the levels of optimism in January. Sellers, on the other hand, were more optimistic however with 46 percent believing now is a good time to sell. Home prices rose 0.6 percent nationally from February to March according to CoreLogic. The president and CEO of that group said, “In terms of home price appreciation, this has been the hottest spring in nine years.” Meanwhile conforming no point 30 year fixed 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: Housing Market, CoreLogic, 30 year fixed rates, Fannie Mae, Housing, National Housing Survey, consumer confidence

ARAMCO Report - Tuesday May 27, 2014

Posted by Mehran Aram on Tue, May 27, 2014 @ 17:05 PM

Mixed economic data has kept mortgage rates at their lowest level of the year despite investor’s expectations of rising interest rates in 2014. Conforming no point 30 year fixed rates average 4 1/4 % and 15 year rates closer to 3 1/4 %. According to the conference board, Consumer Confidence rose in May but the number of people who plan to buy a home within 6 months fell to 4.9 %. Meanwhile the S&P Case Shiller report showed a year over year increase of 12.4 % in home prices in March.

And now for something completely different: On May 18th, 2004, the Big Unit, Randy Johnson, with the Arizona DiamondBacks became the oldest pitcher to ever throw a perfect game at age 40.

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: Reverse Mortgage, Aramco Report, and now for something completely different, home purchase, Mehran Aram, S&P Case Shiller, 30 year fixed rates, Baseball, Single Family Home, Big Unit, economic data, refinance, consumer confidence, Diamondbacks, Randy Johnson

ARAMCO Report - Thursday May 8, 2014

Posted by Mehran Aram on Thu, May 8, 2014 @ 16:05 PM

As less Americans file for unemployment benefits, and layoffs slowly stabilize following weeks of volatility, the overall health of the U.S. workforce appears to be slowly improving. This is evidenced by consumer confidence which remains at its second-highest level in over six years, demonstrating an increased optimism among households. Interest rates remain quite low, with 30-year fixed rates at around 4.25% and 15-year rates averaging 3.25%.

And now for something completely different. Although he was deaf, Beethoven stimulated the ears of millions of people. Beethoven’s 74 minute long Ninth Symphony continues to affect our daily lives, as CDs were designed to contain exactly 74 minutes of music in order to play his final masterpiece in its entirety.

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 Alexander Aram filling in for Mehran Aram with today’s ARAMCO Report.

Ask Mehran Aram 

Topics: Mehran Aram, unemployment benefits, Interest Rates, Aramco Mortgage, workforce, beethoven, low rates, consumer confidence