ARAMCO Report - The Mother of ALL Mortgage Blogs!

ARAMCO Report - Monday June 1, 2015

Posted by The Aramco Group on Mon, Jun 1, 2015 @ 16:06 PM

Weaker Economic Data Supportive of Low Interest Rates

Recent weak reports—about the GDP contracting and consumer sentiment going down—support a low interest rate environment. 

The negative reports from the U.S. Commerce Department and the University of Michigan Consumer Sentiment Index contributed to a mild flight to safety rally on Friday May 29, 2015 that drove down 10-year T-Bill yields and mortgage rates.

The most impactful contributing report was the Commerce Department’s revised quarter-one GDP figures that showed the economy contracted 0.7 percent. While this is less than the 1.0 percent revision economist expected, it may nonetheless spoil hopes that the country would have grown an average of 3.0 percent over the last 12 months.

The University of Michigan’s announced on the same day that its Consumer Sentiment Index also fell to May reading of 90.7, from 95.9 in April. This is a six-month low for the index.

Housing data is a silver lining however as the unfavorable economic data supports the Fed’s continued patience in not yet raising short-term interest rates, which promotes buyer demand.

People looking to buy a home will find mortgage rates near all-time lows with conforming no point 30-year fixed rates averaging 3.75 percent and 15-year rates averaging 3.00 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: Interest Rates, U.S. economy, GDP, 30 year fixed rates, interest, economic data, U.S. Department of Commerce, University of Michigan

ARAMCO Report - Thursday March 2, 2015

Posted by The Aramco Group on Fri, Apr 3, 2015 @ 12:04 PM

A new analysis of housing data from 24/7 Wall Street revealed that a full, nationwide recovery of single-family home values might still be 2 ½ years away. Values are on the rise, but some markets—particularly those in Western states including California—have recovered more quickly. Looking at other current economic data, new orders for U.S. factory goods rose unexpectedly in February — good news for a sector that accounts for 12% of the U.S. economy but that is negatively affected whenever the dollar is gaining strength, as it is now. Also, last week, initial jobless claims fell close to their lowest levels in 15 years according to the Labor Department’s jobs report. Claims decreased by 20,000 to a seasonally adjusted 286,000 in the week ending on March 28th. Thursday’s jobs report also showed that the number of people continuing claims for unemployment assistance fell by 88,000 — meaning that the number people discontinuing assistance is exceeding the rate at which new people need help.

Conforming no point 30 year fixed rates average 3.75 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: financial recovery, durable goods, Housing Market, economic data, housing recovery, home values

ARAMCO Report - Tuesday March 24, 2015

Posted by The Aramco Group on Tue, Mar 24, 2015 @ 13:03 PM

The job market appears to be recovering and businesses are hiring at the fastest pace in 15 years. However it seems a lack of long-term trust in the economy has resulted in a decline in durable goods investments for businesses across the country. According to the U.S. Department of Commerce, companies have reduced investments in items like cars, appliances and computers for three of the last four months, and are now investing less than they were a year ago. Large-scale declines in machinery purchases may also be due to the reduction in oil and gas prices, which has put pressure on the previously gangbusters domestic energy sector. Meanwhile in the mortgage bond market, rates remain low with conforming no point 30 year fixed rates averaging 3.75 percent with 15-year rates 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: durable goods, gasoline, labor market, 30 year fixed rates, economic growth, jobs, economic data

ARAMCO Report - Monday March 23, 2015

Posted by The Aramco Group on Mon, Mar 23, 2015 @ 15:03 PM

Homebuilding continues to trail pre-recession levels even though the economy is gaining steam and consumer demand for new homes is high. This is according to research by the National Association of Home Builders (NAHB).  The housing collapse following 2008 forced skilled construction workers into other industries, and 67 percent of housing developers reported that labor availability was their top concern in 2015. 57 percent also worried about lot availability. This stands in blunt contrast to 2011 when only 13 percent and 21 percent of builders were concerned about the availability of labor and lots, respectively. There is a bright spot: the percentage of developers concerned that buyers would not qualify for a mortgage has dropped from 67 percent to 45 percent in the last two years. That represents the sector’s growing confidence in the consumer economy that influences the demand for homes.

Conforming no point 30 year fixed mortgage rates average 3.75 percent with 15-year rates averaging 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: confidence, economic growth, National Association of Home Builders, Construction, labor, lots, economic data, builders, availability

ARAMCO Report - Friday March 20, 2015

Posted by The Aramco Group on Mon, Mar 23, 2015 @ 14:03 PM

Foreclosure activity—including default notices, scheduled auctions and bank repossessions—should return to pre-crisis levels by the end of 2015 according to Realty Trac. The total numbers fell year-over-year by 9% to their lowest level since July of 2006. This is further evidence of a healthier housing market both nationally and in California. January to February, 2015 was the best monthly increase in state-wide home sales for the beginning of the year since 1980. That gives hope for increasing gains into the spring months. Most of February’s home sales were in the Central Valley however, according to Selma Hepp, a senior economist for the California Association of Realtors who spoke to the Pacific Southwest Association of Realtors in El Cajon on Tuesday. San Diego has not rebounded as much mostly because the county is suffering from a shortage of housing inventory.  Last month 2,245 units sold, which is a 13.2 percent increase from January, but it is a decrease of 1.2 percent from last year. Meanwhile conforming no point 30 year fixed mortgage rates average 3.75 percent with 15-year rates 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: home sales, Realty Trac, foreclosures, California Association of Realtors, economic growth, economic data

ARAMCO Report -Tuesday September 30, 2014

Posted by Mehran Aram on Tue, Sep 30, 2014 @ 17:09 PM

Mortgage rates were unchanged despite weaker than expected economic data. Pending home sales fell 1% in August and according to the Case-Shiller index, home price appreciation for the entire nation slowed to only 5.6% in the 12 months ended in July. Separately the consumer confidence index and the Chicago purchasing manager’s index both fell in September. Conforming no point 30 year fixed mortgage rates average 4 1/4% with 15 year rates closer to 3 3/8ths.

And now for something completely different: Did you know that in Switzerland if you fail you driver’s license exam 3 times, you are required to see a psychologist? This is to assess the reasons for your repeated failures.

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: home sales, Reverse Mortgage, Aramco Report, and now for something completely different, Case-Shiller Index, Chicago purchasing manager's index, 30 year fixed rates, Switzerland, psychologist, driver's license, economic data, Mortgage rates

ARAMCO Report -Monday September 22, 2014

Posted by Mehran Aram on Mon, Sep 22, 2014 @ 17:09 PM

Weaker than expected economic data and concerns about China’s economic outlook was supportive of the bond market. Existing home sales fell 1.8% in August and year over year were down 5.3%. And the Chicago Fed’s National Activity index also fell in August. Meanwhile higher level of student debt is expected to reduce U.S. home sales by around 8% this year. Conforming no point 30 year fixed mortgage rates average 4 1/4% with 15 year rates closer to 3 3/8ths.

And now for something completely different:Did you know that a book borrowed by George Washington in 1789 was marked as overdue for 221 years? It was returned in 2010 and the $300,000 in late fees were waived.

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: home sales, Reverse Mortgage, Aramco Report, home purchase, George Washington, bond market, China, 30 year fixed rates, Library, Chicago Fed's National Activity, economic data, refinance

ARAMCO Report - Friday September 12, 2014

Posted by Mehran Aram on Fri, Sep 12, 2014 @ 17:09 PM

Stronger than expected economic data put further upward pressure on mortgage rates. September consumer sentiment rose to the highest level since July of 2013, while August retail sales were the strongest since April. Conforming no point 30 year fixed mortgage rates average 4 1/4% with 15 year rates closer to 3 3/8ths. Meanwhile according to CoreLogic in Southern California the number of homes with reduced asking price has risen sharply in recent months as buyers gain more leverage.

And now for something completely different: Did you know that the fastest running bird is the Ostrich? Yes, it has been clocked at 60 miles per hour!

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: Reverse Mortgage, Aramco Report, and now for something completely different, home purchase, birds, CoreLogic, Southern California, 30 year fixed rates, retail sales, Ostrich, economic data, Mortgage rates, buyers

ARAMCO Report - Tuesday September 9, 2014

Posted by Mehran Aram on Tue, Sep 9, 2014 @ 17:09 PM

Despite the lack of any market moving economic data, mortgage discount points rose by roughly a 1/4 point. This in reaction to a report from the San Francisco Federal reserves which indicates that investors have been underestimating how quickly the Fed can raise interest rates. Certainly, we have seen evidence of that over the years. For now conforming no point 30 year fixed mortgage rates average 4 1/8th with 15 year rates closer to 3 1/4%.

And now for something completely different: Did you know that a fortune cookie factory in Long Island City, New York produced 5 out of 6 winning Lottery numbers in 2005? A total of 110 players were winners.

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: and now for something completely different, home purchase, Winners, 30 year fixed rates, New York, economic data, Long Island City, fortune cookie, factory, Lottery, San Francisco Federal

ARAMCO Report - Monday August 11, 2014

Posted by Mehran Aram on Mon, Aug 11, 2014 @ 17:08 PM

The lack of any new market moving economic data and no worsening of geopolitical risks, left mortgage rates unchanged. Conforming no point 30 year fixed rates averaging 4 1/4% with 15 year rates closer to 3 1/4. According to Transunion, nationwide $50 – 79 billion in home equity lines of credit with interest only payments are at a heightened risk for default in coming years, as they near the end of their draw period and will require principle and interest payments.

And now for something, completely different: You may have known that President Ronald Reagan worked as a lifeguard in his youth. But did you know that as a lifeguard he saved over 77 lives?

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: Aramco Report, and now for something completely different, home purchase, Ronald Reagan, home equity, 30 year fixed rates, Transunion, interest, economic data