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Homeowner Equity Rebounding

Posted by The Aramco Group on Mon, Jul 13, 2015 @ 17:07 PM

Real Estate equity is on the mend according to new data released by the Federal Reserve. At its peak in 2005, the value of homes in the U.S. hovered around $13.1 trillion. In the aftermath of the 2008 financial crises, that number plummeted and ultimately led to more than seven million homes being lost to foreclosure. By 2011, homeowner equity had dropped to $6.4 trillion, affecting half of America’s mortgages.

The Fed now says that between 2011 and 2014, homeowner equity climbed to $11.3 trillion, putting the market on track for a full recovery by next year. This recovery is crucial in giving homeowners who had been underwater for years options previously closed off to them.

Home equity lending activity is on the rise, which include single lump-sum loans and lines of credit. Homeowners are refinancing, as mortgage rates remain low. The current no point 30-year fixed rates are averaging 4.125 percent and 15-year rates are averaging 3.25 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 question may be featured in an upcoming article.

Topics: 30 year fixed rates, equity

ARAMCO Report - Tuesday March 17, 2015

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

Majority of US Borrowers have Mortgages that are Right-Side Up

 The analytics company CoreLogic reported today that approximately 1.2 million American borrowers regained equity in 2014. At the end of the 4th quarter of 2014 approximately 89% of all mortgaged properties had equity — equivalent to 44.5 million properties total. Meanwhile, S&P Experian also reported that first-time mortgage default rates dropped for the first time since July 2014, down to 1.12 percent. However, that rate is still 11 basis points higher than the year-over-year low. Conforming no point 30 year fixed mortgage rates average 3.875 percent with 15-year rates closer to 3.125. And now for something completely different: Did you know that the people who make Guinness estimate that 13 million pints of that beer will be consumed across the globe this St. Patrick’s day? That is enough volume to fill 60% of the Empire State Building. 

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: 30 year fixed rates, mortgage, equity, mortgage news, Mortgage Market, Underwater

ARAMCO Report - Monday January 26, 2015

Posted by The Aramco Group on Mon, Feb 2, 2015 @ 11:02 AM

According to RealtyTrac roughly 20% of all properties with a mortgage are now equity rich with at least 50% equity. Median home prices bottomed out in March of 2012 and have increased by about 35% since then. That’s great news for homeowners who took a beating for about 5 years as values were declining. Meanwhile mortgage rates remain at their lowest level since 2013 with conforming no point 30 year fixed rates averaging 3 5/8ths and 15 year rates closer to 3%.

And now for something completely different… Did you know that because of its lack of domestic criminals, the Netherlands rents out empty jail cells? They rent them out to ease overcrowding in Norwegian prisons.

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: RealtyTrac, 30 year fixed rates, equity, The Netherlands

ARAMCO Report -Friday September 19, 2014

Posted by Mehran Aram on Fri, Sep 19, 2014 @ 17:09 PM

According to 2nd quarter data from the Federal Reserve, growth in household owners’ equity rose by a more modest 1.7%, but up $4.7 trillion from the trough during the housing crisis equating to roughly $53,000 per property. At this pace it could take until early 2018 to fully recover all the equity. Meanwhile following a drop in bond yields on Friday, conforming no point 30 year fixed mortgage rates still average 4 1/4% with 15 year rates closer to 3 3/8ths.

And now for something completely different: In 1912, an orphanage in Paris held a raffle to raise money for a hospital. Hard to believe, but the raffle prizes were live babies!

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, and now for something completely different, home purchase, bonds, 30 year fixed rates, Bond yields, equity, Federal Reserve, Paris, refinance, Mortgage rates

ARAMCO Report - Thursday May 22, 2014

Posted by Mehran Aram on Thu, May 22, 2014 @ 18:05 PM

More good news on housing. Existing home sales in April rose by 1.3 %, the fastest pace since December. That was the first increase in sales in 2014. Meanwhile in the Golden State more homeowners now have positive equity according to the California Association of Realtors, 88.4 % of home sellers in April had positive equity. Meanwhile conforming no point 30 year fixed mortgage rates still average 4 1/4 % with 15 year closer to 3 1/4 %.

And now for something completely different. The 1906 Chicago Cubs hold the record for the most road wins in a single season with 60 wins.

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, Mehran Aram, Chicago Cubs, California, 30 year fixed rates, California Association of Realtors, equity, Baseball, refinance