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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 - 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 - Monday September 15, 2014

Posted by Mehran Aram on Mon, Sep 15, 2014 @ 17:09 PM

The latest economic data reflects an uneven improvement in the U.S. economy. An index of manufacturing in the New York region strengthened to a near 5 year high in September while U.S. industrial production fell in August. The offsetting economic data left mortgage rates unchanged with conforming no point 30 year fixed mortgage rates averaging 4 1/4% and 15 year rates closer to 3 3/8ths. Meanwhile 2/3rds of Americans believe they need a stellar credit score to buy a home.

And now for something completely different: Did you know that 96% of people put the peanut butter on first when making a Peanut Butter and Jelly sandwich? After all, it’s not called a Jelly and Peanut Butter.

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, Jelly, industry, 30 year fixed rates, New York, ARAMCO, Peanut Butter, refinance, economy, U.S.

ARAMCO Report - Monday September 8, 2014

Posted by Mehran Aram on Mon, Sep 8, 2014 @ 17:09 PM

According to a Fannie Mae report, in August consumer sentiment toward housing turned a bit negative. Overall 35% of them feel the economy is on the right track while 56% believe we are on the wrong track. But 64% of the respondents view conditions as good for purchasing a home. Meanwhile conforming no point 30 year fixed mortgage rates still average 4 1/8th with 15 year rates closer to 3 1/4%.

And now for something completely different: Did you know that Dodger stadium and the area surrounding it has its own designated zip code? The L.A. City Council unanimously voted to get it one in 2009.

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, 30 year fixed rates, Fannie Mae, ARAMCO, Housing, L.A. Dodgers, Zip Code, refinance, economy, Dodger Stadium

ARAMCO Report - Wednesday August 27, 2014

Posted by Mehran Aram on Wed, Aug 27, 2014 @ 17:08 PM

Mortgage application activity, rose nearly 3% last week while loan requests for home purchases also rose by about 2.5%. While the latter statistic is an indication of a healthy level of home sales, the Congressional Budget Office showed little optimism towards the U.S. economy as a whole by lowering its yearly GDP growth projection from 3.1% to 1.5%. Meanwhile in the bond market a lack of significant news has kept 30-year fixed rates averaging 4.125% and 15-year rates closer to 3.25%.

And now for something, completely different: In addition to the charisma and energy John F. Kennedy brought to the White House, he is also remembered as the only U.S. President to be awarded a Pulitzer Prize for his book, “Profiles in Courage.”

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, Aramco Report, home purchase, White House, bond market, JFK, Congressional Budget Office, 30 year fixed rates, Loan, Mortgage application, U.S. President, Pulitzer Prize, economy, U.S.

ARAMCO Report - Friday June 13, 2014

Posted by Mehran Aram on Fri, Jun 13, 2014 @ 17:06 PM

The University of Michigan consumer sentiment index in June fell to the lowest level in 3 months led by more pessimistic expectation for the U.S. economy.  Meanwhile inflation at the wholesale level was down by 2/10ths of a % based on the May producer price index.  The combination of lower inflationary pressures and mixed economic data helped keep mortgage rates low with conforming no point 30 year fixed rates averaging 4 1/4 % and 15 year rates closer to 3 1/4.

And now for something completely different: The Seattle Mariners won 116 games in 2001, tying the 1906 Chicago Cubs for the Major League record for the most wins in a single season.

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: Aramco Report, and now for something completely different, Mehran Aram, Chicago Cubs, 30 year fixed rates, mortgage news, Baseball, economic data, Mortgage rates, MLB, Seattle Mariners, University of Michigan, economy