ARAMCO Report - The Mother of ALL Mortgage Blogs!

ARAMCO Report - Friday March 27, 2015

Posted by The Aramco Group on Fri, Mar 27, 2015 @ 14:03 PM

Mortgage amounts are currently rising faster than home prices according to The Mortgage Bankers Association. The average purchase loan amount has risen over 30% since 2011 up to nearly $300,000 and is now at a higher level than before the housing market crash. One possible explanation for the gap between the rates of change for mortgage amounts and home prices, according to the same association, is that the market for larger homes has rebounded more quickly, swinging average mortgage amount upwards. The stock market’s bull run for the last six years may have helped those invested re-enter the market for more expensive homes while middle and low income households may still have moderate credit after the recession or may otherwise still be intimidated from applying for mortgages. Meanwhile, with the consumer-price index rising 0.2 percent in February, its first gain in four months, the Fed is likely to view this as positive economic news and continue its uptick in interest rates over the next year. Currently though, 30-year fixed rates average 3.625 percent while 15-year rates are closer to 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: Consumer Price Index, 30 year fixed rates, mortgage, homeownership, stock market, home values, stock prices, Mortgage Amounts

ARAMCO Report - Thursday March 19, 2015

Posted by The Aramco Group on Thu, Mar 19, 2015 @ 19:03 PM

The Federal Reserve (The Fed) triggered an impressive bond market rally in the middle of this week that pushed mortgage rates down one eighth of a percent. The result is that conforming no point 30 year fixed mortgage rates now average 3.75 percent with 15 year rates closer to 3 percent. The Fed triggered the rally by committing to a gradual path to raising its rates in 2015 due to revised down projections for growth and inflation. Inflation is a general measurement of the amount of money transferring hands and is a proxy for overall gainfulness of employment in the U.S. Jobs are up but inflation has been below targets for 34 straight months. The Consumer Price Index currently estimates inflation at -.o1 percent since January 2014 versus the Fed’s goal of approximately 2% per year by 2017. Interest rates should stay low for the medium term as the bank continues to shepherd the economy upward. Expect rates to rise in the summer, and for them to stay below 1 percent for the rest of 2015. 

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: financial recovery, Consumer Price Index, CPI, Interest Rates, Fed, Fed Chairwoman, 30 year fixed rates, economic growth, Federal Reserve, inflation, economy