ARAMCO Report - The Mother of ALL Mortgage Blogs!

ARAMCO Report - Wednesday May 14, 2015

Posted by The Aramco Group on Wed, May 13, 2015 @ 16:05 PM

How lower import prices may influence interest rates

Import prices for goods coming to the U.S. went down 0.3 percent in April 2015, according to The U.S. Department of Labor. This is after prices fell an adjusted 0.2 percent in March 2015, and in total have fallen 10.7 percent over the last 12 months. Lower oil prices and the strengthening of the U.S. dollar drove most of this decline.

The Federal Reserve is currently debating when it would be appropriate to raise short-term interest rates from their current level at 0.25 percent. The Fed is waiting for the U.S. economy will enter into a beneficial period of 2 percent annual inflation. Decreasing import prices are the opposite of inflation, however, so the Fed may continue to delay. Although there has been a recent uptick in bond yields and mortgage rates, low inflation rates would bode well for mortgage interest rates staying level.

Total mortgage application activity for both refinancing and home purchases fell 3.5 percent in the week ending May 8 according to The Mortgage Bankers Association.

Potential homebuyers will find mortgage rates near historic lows. Conforming no point 30-year fixed mortgage rates average 3.875 percent, and 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.

Ask Mehran Aram

Topics: financial recovery, Interest Rates, Fed, Fed Chairwoman, 30 year fixed rates, economic growth, Federal Reserve, inflation, economy

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 - 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

ARAMCO Report - Wednesday September 3, 2014

Posted by Mehran Aram on Wed, Sep 3, 2014 @ 17:09 PM

According to RealtyTrac, residential property sales fell 3% in July and were down 12% from a year ago. Meanwhile mortgage applications for purchase and refinancing also fell last week. But on a more positive note, new orders for manufactured goods rose by a record 10 1/2% in August while the Fed’s Beige Book survey showed continued economic growth in every district. 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 and very odd: Did you know that in 1978 grave robbers stole the corpse of revered silent film actor Charlie Chaplin? They demanded $600,000 ransom to return the body. No, they didn’t get the money!

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, home purchase, RealtyTrac, Beige Book Survey, 30 year fixed rates, economic growth, refinance, Fed's, Charlie Chaplin, Ransom, robbers

ARAMCO Report - Tuesday May 13, 2014

Posted by Mehran Aram on Tue, May 13, 2014 @ 16:05 PM

A much weaker than expected reading on retail sales gave the bond market a boost and pushed the 10 year treasury yields down to 2.60 %. Retail sales in March rose by only 1/10th of a %, suggesting slower economic growth in the second quarter. Conforming no point 30 year fixed mortgage rates now average 4 1/4 % with 15 year rates closer to 3 1/4 %. Meanwhile according to the Corelogic Case Shiller indices home price appreciation in 2014 is expected to be less than 1/2 of what it was.

And now for something completely different: Did you know that the plastic pink flamingo is the official city bird of Madison, Wisconsin? 

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, San Diego, Mehran Aram, bond market, economic growth, Wisconsin, Corelogic Case Shiller, Mortgage rates, Madison