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ARAMCO Report - Wednesday March 18, 2015

Posted by The Aramco Group on Thu, Mar 19, 2015 @ 09:03 AM

Gap Between Housing Costs and Average Household Income Widening

There is a gap between rental costs and average household income, and it is widening. Typical rents have risen 15 percent across the country over the last five years, but income for renters is up by only 11 percent over the same period. Rents as growing portions of incomes—especially in high-cost areas—make it difficult for would-be first time buyers to save an adequate amount for a down payment. Housing starts need to rise if this trend is to be reversed, and February 2015’s housing starts statistics are down, but new permits granted have risen however. That means there’s hope that spring snowmelt will bring a much-needed defibrillation to home construction. Conforming no point 30 year fixed mortgage rates still average 3.875 percent with 15-year rates closer to 3.125 percent. And now for something completely different: Actors working as characters at Disney theme parks must go through an autograph training session so signatures are always the same.

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.

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Topics: residential construction, Disney, Housing Market, inventory, 30 year fixed rates, first-time buyers, Mortgage rates, renting, home price appreciation, homes