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Consumer confidence in housing market at record high

Posted by Mehran Aram on Tue, Aug 13, 2019 @ 06:08 AM

Low mortgage rates and unemployment figures in July helped boost consumer confidence to the highest levels ever record. According to Fannie Mae’s monthly index, “confidence about not losing job” and “mortgage rates will go down” rose significantly.

Although home buyers continue to battle against rising prices and low inventory, particularly for entry-level homes, mortgage rates dropping last month helped boost confidence that the future of the housing market would remain strong.

More consumers reported in July’s survey that now is a good time to buy a home and a growing number of respondents believe that home values will continue to rise over the next year.

Today, conforming no-point 30-year fixed mortgage rates are averaging 3.625 percent and 15-year rates are near 3.125 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 questions may be featured in an upcoming article.

Topics: Housing Market, Fannie Mae, Mortgage rates, consumer confidence, home buyers, U.S. Housing Market, home inventory

Home Purchase Sentiment near record high

Posted by Mehran Aram on Wed, Jun 12, 2019 @ 06:06 AM

Exactly one year after setting a record high, Fannie Mae’s Home Purchase Sentiment has nearly done it again. The HSPI for May 2019 had a reading of 92.0, just shy of matching the all-time high reached in May 2018 of 92.3, largely because of a substantial 13-point increase in the number of Americans who believe now is a good time to buy a home.

In addition to respondents becoming decidedly more convinced that market conditions are ripe to buy a home, consumers also believe that home prices would increase in the near-future while mortgage rates would decline.

Meanwhile, the net share of respondents who believe now is a good time to sell home a declined 3-points from the same month last year.

Today, conforming no-point 30-year fixed mortgage rates are averaging 3.875 percent and 15-year rates are near 3.375 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 questions may be featured in an upcoming article.

Topics: home prices, home purchase, Fannie Mae, Mortgage rates, Home Purchase Sentiment

Fannie Mae: consumers remain bearish about home buying

Posted by Mehran Aram on Sat, May 11, 2019 @ 06:05 AM

Inventory rates slowly climbing, and mortgage rates hold steady did little to turn consumers on to the idea of buying a home last month. Fannie Mae reported it its Home Purchase Sentiment Index this week that net positive responses to the question about whether now is a good time to buy a home fell 8 points in April. This is a significant 15 percentage points lower than the same month last year.

Despite the negative sentiment about buying a home, consumers seem optimistic that conditions will continue to improve in the coming months. The share of those who believe rates will decline over the next year climbed 12 points over between March and April.

Historically, the net percentage of American’s who feel conditions are ripe to purchase a home increases in the summer months which are traditionally known as “home-buying season”.

Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 4.125 percent, 15-year rates are near 3.625 percent and the 5-year ARM is averaging 4.00 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 questions may be featured in an upcoming article.

Topics: home buying, home purchase, Fannie Mae, Mortgage rates, consumer, Home Purchase Sentiment

Government support of 30-year mortgage questioned at confirmation hearing

Posted by Mehran Aram on Tue, Feb 19, 2019 @ 05:02 AM

The Senate Banking Committee met last week for the confirmation hearing of Mark Calabria, the Trump Administration’s nominee to oversee Fannie Mae and Freddie Mac – mortgage giants that guarantee roughly half of U.S. home loans. Calabria was a controversial choice as he has previously criticized government control of Fannie and Freddie and suggested that they should pull back their support of the 30-year mortgage.

However, Calabria acknowledged the importance of the long-term mortgage in his confirmation hearing on Thursday and added that if confirmed he would “carry out the clear intent of Congress, not impose my vision”. Calabria has such a loan himself on his Washington D.C. property, according to his nomination disclosures.

The nominee said he would scrutinize big banks if confirmed and committed to establishing firm affordable housing goals and preventing housing discrimination.

Today, conforming no-point 30-year fixed mortgage rates are averaging 4.25 percent, 15-year rates are near 3.75 percent and the 5-year ARM is averaging 4.25 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 questions may be featured in an upcoming article.

Topics: Fannie Mae, Freddie Mac, government, Mortgage rates, Home Loans, 30-Year Mortgage, Mark Calabria

Survey: Americans feeling confident about finances

Posted by Mehran Aram on Tue, Feb 12, 2019 @ 05:02 AM

Fannie Mae’s Home Purchase Sentiment Index climbed 1.2 points last month to a reading of 84.7, a reversal of the 2.3 point drop in December but still shy of the all-time high of 89.5 reached a year ago. The Home Purchase Sentiment Index (HPSI) is compiled from a monthly National Housing Survey conducted by Fannie Mae.

The increase was driven by an 8-point increase in the net share of respondents who reported higher income levels and a 4-point increase in the net share of those who say now is a good time to buy a home.

However, the number of Americans who believe home prices will continue to climb has fallen 22-points since last year. This latest installment of the monthly survey is the first since the partial government shutdown that begin in December furloughed over 800,000 federal workers.

As for mortgage rates, today, conforming no-point 30-year fixed mortgage rates are averaging 4.375 percent, 15-year rates are near 3.75 percent and the 5-year ARM is averaging 4.25 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 questions may be featured in an upcoming article.

Topics: home prices, home buying, Fannie Mae, National Housing Survey, Mortgage rates, Home Purchase Sentiment, Housing Sentiment

Higher loan limits coming in 2019

Posted by Mehran Aram on Mon, Dec 3, 2018 @ 05:12 AM

The Federal Housing Finance agency announced last week that mortgage giants Fannie Mae and Freddie Mac will increase their lending limits next year as a result of nationwide home-price gains. Currently, the maximum conforming loan limit for single-unit properties is $453,100. This will increase to $484,350 in 2019.

Loan limits are based on median home prices in a given metropolitan area. Higher limits assist buyers by providing access to better financing terms on a new mortgage or refinance. Loans that exceed these limits are generally referred to as jumbo or non-conforming loans.

Housing market like San Diego are typically given significantly higher loan limits to allow for the higher median home price. For 2019, the conforming high balance limit in San Diego will increase from $649,750 to $690,000.

Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 4.875 percent, 15-year rates are near 4.25 percent and the 5-year ARM is averaging 4.5 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 questions may be featured in an upcoming article.

Topics: San Diego, Housing Market, Fannie Mae, Freddie Mac, loan limits, Federal Housing Finance Agency, FHFA

Consumer confidence waning

Posted by Mehran Aram on Wed, Nov 14, 2018 @ 05:11 AM

Americans are feeling uneasy about the current state of the housing and economy. Fannie Mae’s latest Home Purchase Sentiment Index fell two points in October to a reading of 85.7. While any readings over 50 indicate positive sentiment, last month’s decline brings the index to its lowest point since last fall.

“After hitting a survey high during the spring home buying season, the HSPI has trended downward, declining in October to its lowest level in a year,” said Doug Duncan, Fannie Mae’s chief economist. “The net share of consumers who said it’s a good time to buy a home is near the second lowest reading in the survey’s history.”

Consumers who report that conditions are prime to sell a home also dropped. Still, when asked about the state of the overall economy, American’s remain positive. The share of consumers who think the economy is on the right track reached a new survey high.

Today, conforming no-point 30-year fixed mortgage rates are averaging 4.875 percent, 15-year rates are near 4.325 percent and the 5-year ARM is averaging 4.325 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 questions may be featured in an upcoming article.

Topics: Fannie Mae, Mortgage rates, consumer confidence, consumer

Fannie Mae: Americans upbeat about economy

Posted by The Aramco Group on Sun, Oct 14, 2018 @ 10:10 AM

Despite rising interest rates, Americans feel generally positive about the state of the economy, housing and their own finances. Although Fannie Mae’s Home Purchase Sentiment Index fell 0.3 percent in September, the decline was not enough to erase the 1.5 percent gain from August.

Last month’s decline was in part due to a three-percentage point drop in the number of consumers who reported that their household income was higher than it was a year ago. However, 53 percent of respondents to the poll say they expect their income to improve in the coming year.

Even in the face of higher borrowing costs, the net share of Americans who say now is a good time to buy a home increased five percent. Today, conforming no-point 30-year fixed mortgage rates are averaging 4.75 percent, 15-year rates are near 4.25 percent and the 5-year ARM is averaging 4.25 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 questions may be featured in an upcoming article.

Topics: Housing Market, U.S. economy, Fannie Mae, Mortgage rates, household income

Fannie Mae Survey: Good Time to Sell

Posted by The Aramco Group on Sun, Jul 12, 2015 @ 14:07 PM

Amid a strong jobs report and a growth in median household income, homebuyers have a favorable view of the current real estate market. That is according to a National Housing Survey conducted in June by Fannie Mae. American’s feel confident about home sales and rental prices that should translate into an increase in purchase activity this year.

The survey results indicated that 52 percent of people believe this year is a good time to sell a home, an all-time high. Likewise, 47 percent of people surveyed believe home prices will increase over the next twelve months.

This news arrives as housing becomes more affordable. Mortgages are being written at lower rates as investors worldwide are seeking out the security of U.S. mortgages bonds. Growing concerns over China and Greece are driving down effective interest rates on both adjustable and fixed mortgages. Last week ended with the current conforming no point 30-year fixed rates averaging 4.125 percent and 15-year rates 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: Fannie Mae, jobs, Jobs Report

ARAMCO Report - Friday June 5, 2015

Posted by The Aramco Group on Fri, Jun 5, 2015 @ 16:06 PM

Low down payment mortgages in San Diego increase

Approximately 15 percent of the mortgages originated in San Diego during quarter one were special low down payment loans according to ReatlyTrac. That is up from approximately 12 percent in the first quarter of 2014.

Structured low down payment loans like the ones offered by FHA, Fannie Mae, and Freddie Mac are loans with a loan-to-value ratio of 96.5 percent or higher — meaning the down payment is approximately 3-3.5 percent of home’s value. Nationally, the average down payment during the first quarter 2015 for FHA mortgages, for example, was 89.5 percent lower than the average down payment for a conventional loan ($7,609 vs. $72,590) according to RealtyTrac.

Nationally low down payment mortgages made up a larger share of total purchases during the same period, up to 27 Percent from 26 percent one year ago.

The numbers of homebuyers, particularly first time buyers, were running near record lows over the past couple of years according to Chase International brokerage. The growing number of low down payment loans reflects an appetite on the part of lenders and the government to reverse that trend. 

Mortgage applicants will find that conforming no point 30-year mortgage rates average 4.125 percent while 15-year rates average 3.25 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: 30 year fixed rates, Fannie Mae, Freddie Mac, first-time buyers, FHA, Low Down Payments