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Millennials want to own – they just can’t afford it

Posted by Mehran Aram on Sat, Sep 7, 2019 @ 07:09 AM

Although an increasing number of young adults say home ownership is among their top goals, data shows that unaffordable prices and mounting student loan debt is making this goal harder to achieve. In a survey conducted jointly by CoreLogic and RTi Research shows that more than a quarter of millennials are interested in purchasing a home within the next year.

The increase in Millennial home buyers entering the market putting increased pressure on home prices as well.

“A growing number of millennials are expressing an interest in buying homes, reinforcing the theory that this cohort is continuing to engage within the housing market,” said Frank Martell, president and CEO of CoreLogic. “But with so few homes available for sale, the imbalance has created an affordability crisis that is getting worse every day.

Meanwhile, 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: Millennials, home purchase, Housing Market, CoreLogic, home ownership, Mortgage rates, Housing Affordability, Millennial Homeowners, Affordability, Young Adults

San Diego home still selling for a premium

Posted by Mehran Aram on Sat, Aug 31, 2019 @ 08:08 AM

A decade removed from the Great Recession, the housing market in the U.S. appears to be normalizing. One indicator of this is that the share of homes selling above their original list price is dropping. Bidding wars over the limited number of homes for sale caused prices to soar well-above list prices for much of the last several years. But a new report from CoreLogic shows that the share of homes selling at or above list price has returned to early 2000 levels.

The peak was reached in Q2 2018 when 43 percent of all home sold in the U.S. went for more than asking. This is triple the level during the peak of the recession in early 2008. While this has dropped to 39.2 percent nationally as of this summer, San Diego stands apart.

The greater San Diego market remained just below the all-time high with 41 percent of homes selling at or above the list price. The region joins other hot markets like San Francisco (83 percent) that have bucked the national trend.

Meanwhile, 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: home sales, San Diego County, Housing Market, CoreLogic, Mortgage rates, San Diego Housing Market, San Diego Home Sales, U.S. Housing Market

Home prices continue slow climb

Posted by Mehran Aram on Sun, Aug 11, 2019 @ 08:08 AM

The pace of home sales in the U.S. has remained largely flat for the better part of 2019 but that hasn’t kept prices from continuing their upward journey. While the rate at which prices are climbing has slowed, single-family home prices nationwide remain at an all-time high. According to CoreLogic’s Home Price Index and HPI Forecast for June 2019, home prices in the U.S. are 3.4 percent higher than they were during the same month last year.

Prices also increased on a monthly basis, rising by 0.4 percent from May to June. CoreLogic predicts that the cost of a home will continue to rise as well. Experts anticipate another 5.2 percent increase over the next year.

Increases in home prices in the lower-end of the market are especially challenging for first-time buyers, however, mortgage rate near historic lows could help make monthly mortgage payments more affordable.

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: home sales, home prices, CoreLogic, single family homes, Mortgage rates, June Home Prices

Cease-fire in bidding wars

Posted by Mehran Aram on Thu, Jun 13, 2019 @ 05:06 AM

In just the latest sign that the housing market may be cooling slightly, CoreLogic has released new data that shows the volume of bidding wars taking place has returned to “normal levels”. The number of homes that are selling above their list price, driven by multiple prospective buyers offering competing bids, has dropped a similar rate as the historic norms seen in 2000 and 2001.

Thirty-one percent of homes that sold in March went above their asking price. This is down from the peak of 40 percent reached in the second quarter of 2018.

Home prices are reaching the upper limits of buyers’ budgets, preventing them from upping their offers. In San Diego, 28 percent of homes sold above the original list price while 30 percent sold below the list price.

Meanwhile, 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: home prices, CoreLogic, Mortgage rates, San Diego Housing Market, bidding war

Homeowner equity levels continue to climb

Posted by Mehran Aram on Tue, Jun 11, 2019 @ 05:06 AM

Despite a recent slowdown in price appreciations, homeowners with a mortgage in the U.S. saw their equity levels shoot up by 5.6 percent on average over the past year. This equates to $6,400 per homeowner according to the Home Equity Report released last week by CoreLogic.

Nevada once again led the nation with the biggest increase in equity levels, climbing $21,000, followed by Idaho ($20,700) and Wyoming ($20,300). Californians saw an average increase of $4,116.

These increases have pulled more homeowners out of negative equity territory. The number of households who owe more on their mortgage than their current home’s value has dropped to just 4.1 percent of all mortgage properties.

Meanwhile, 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: homeowners, CoreLogic, negative equity levels, home equity, homeownership, Mortgage rates, Underwater Homes, Equity Rich, households

San Diego home prices holding steady

Posted by Mehran Aram on Fri, May 31, 2019 @ 06:05 AM

Home prices in the San Diego metropolitan area held relatively steady in April on a year-over-year basis according to new figures released this week by CoreLogic. Although this is a rebound from last month when the Southern California region saw its first yearly drop in prices since 2012, San Diego home price gains remain the lowest in the nation.

"The slowdown in price growth and sales over the past year suggests that despite a healthy economy, the cost of homeownership has outpaced incomes for many,” said Andrew LePage, research analyst for CoreLogic.

Today, conforming no-point 30-year fixed mortgage rates are averaging 4.00 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: San Diego County, home prices, San Diego, CoreLogic, homeownership, Mortgage rates, San Diego Home Prices

San Diego home sales down as prices continue to rise

Posted by Mehran Aram on Sat, May 4, 2019 @ 08:05 AM

Home sales in San Diego County fell for the eleventh consecutive month in March according to new data from real estate tracker CoreLogic. High purchase prices are being attributed to the sluggish sales. Although prices have moderated since last year, March’s median home price was up 0.9 percent compared to the same period in 2018.

There were a total of 3,224 closed escrow sales in San Diego County during the month, down 8.6 percent on a year-over-year basis.

In recent months, high home prices have been countered by lower mortgages rates which have been in the slide since early this year. Currently, 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 sales, San Diego County, CoreLogic, Mortgage rates, San Diego Housing Market, median home price, San Diego Home Sales, San Diego Median Home Price, Closed Escrow Sales

What is residential mortgage fraud?

Posted by Mehran Aram on Mon, Mar 25, 2019 @ 06:03 AM

The FBI defines mortgage fraud as “some type of material misstatement, misrepresentation or omission in relation to a mortgage loan, which then relied upon by a lender.”

Common forms of mortgage fraud include lying about income or employment, buying an investment property but claiming it is your primary home, not disclosing debts or even getting someone to co-sign on the loan just because they have good credit.

CoreLogic estimates that 1 in 109 mortgage applications could be somewhat fraudulent and the risk of mortgage fraud had increased by more than 12 percent between 2017 and 2018.

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: CoreLogic, Mortgage applications, Mortgage rates, Mortgage Fraud

Rising home values helping fend off foreclosures

Posted by Mehran Aram on Fri, Mar 15, 2019 @ 05:03 AM

The volume of mortgage delinquencies nationwide continues to decline as increasing home values put homeowners on solid ground. According to CoreLogic’s Loan Performance Insights report for December, the number of mortgages more than 30 days past-due is at a 10-year low.

“With additional ‘skin in the game,’ rising equity reduces the chances of a foreclosure,” said Frank Nothaft, chief economist for CoreLogic. He added that rising equity is “helping to push the foreclosure rate down to its lowest level since 2000.”

Just 4.1 percent of outstanding mortgages nationwide were 30 days or more past due as of December 2018. This is down from 5.3 percent the prior year.

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: homeowners, CoreLogic, foreclosures, home values, Mortgage rates

CoreLogic: home price appreciation slowest in years

Posted by The Aramco Group on Fri, Oct 5, 2018 @ 09:10 AM

It appears that it is not just the weather that is cooling down – it is the housing market too. Real estate analytic company CoreLogic released its monthly Home Price Index this week for August which shows that home price appreciation in the U.S. is currently at its slowest pace in two years with 5.5 percent annual growth overall.

While the West is not immune for the slow-down in price gains, the region continued to outpace the rest of the nation. Including distressed sales, home prices rose the most year-over-year in Nevada (13 percent), Idaho (12.2 percent) and Washington (9.2 percent).

California cities dominated the list of cities with the biggest price gains, including San Diego which ranked fifth in the nation with 6 percent growth in home prices on a year-over-year basis.

Today, conforming no-point 30-year fixed mortgage rates are averaging 4.75 percent, 15-year rates are near 4.25 percent and the 5-year ARM is averaging 4.15 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 prices, CoreLogic