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Bold, new rent control law passes in Calif.

Posted by Mehran Aram on Sat, Sep 14, 2019 @ 08:09 AM

Lawmakers in California last week approved a statewide limit on annual rent increases for most tenants. This sweeping mandate is the latest step to curb rapidly rising rent prices in the State. Specifically, the new law, which would become retroactively effective as of March this year, caps annual rent price hikes to 5 percent after inflation.

The bill, as of this writing, will head to Governor Gavin Newsom’s desk where he is expected to sign it into law. He has made the housing affordability crisis in California a top priority of his administration.

California voters rejected a similar ballot initiative last year that would have allowed cities to impose more strict local rent caps.

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: inflation, Mortgage rates, Housing Affordability, Rent Control, Gavin Newsom, Governor Gavin Newsom, California Rent Prices, Golden State, Rent Hikes, California Rent Control, Rent Prices, Rent Cap, california voters

California lawmakers reach deal on rent control

Posted by Mehran Aram on Thu, Sep 5, 2019 @ 15:09 PM

Renters across California may soon find some relief from endless rent hikes as a result of an agreement reached between Governor Gavin Newsom and the Legislature. The proposal would cap the rate at which landlords can raise rent prices – a maximum of 5 percent plus inflation per year.

The bill now heads to both the State Senate and the Assembly for a vote. Although strongly opposed by landlords, should the bill pass as it is expected to do, would be a major victory for rents who have faced steep increases over the past several years. As more Californian’s found home prices unaffordable, demand for apartments increased, resulting in a rapid increase in lease costs.

Part of the compromise included an exemption on apartments built within the last 15 years from the rent cap – up from a period of 10 years proposed by tenant advocates earlier on.

Meanwhile, 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: Mortgage rates, Rent Control, California Housing Market, Gavin Newsom, California Rent Prices, California Home Prices, Rent Hikes

California housing shortage worse than previously thought

Posted by Mehran Aram on Thu, Aug 29, 2019 @ 06:08 AM

After several months of prodding by Gov. Gavin Newsom, the Southern California Association of Governments, representing half of the state’s population, agreed in June to zone for the development of 430,000 new homes through 2029. Apparently, that figure is short of what is actually needed, drastically so.

According to a letter released by state housing officials last week, the need over the next decade is closer to 1.3 million new homes. Even this new estimate is still far off from the 3.5 million dwellings Newsom is pushing for.

The call for more housing comes as California is battling an unprecedented housing shortage.

Meanwhile, 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: new homes, new housing, Mortgage rates, California Housing Market, Affordable Housing, housing shortage, Gavin Newsom, California Housing Shortage

Calif. revised budget includes $1.75 billion for housing

Posted by Mehran Aram on Mon, May 13, 2019 @ 05:05 AM

California Gov. Gavin Newsom, in his revised state budget announced last week, proposed a record $213.5 billion spending plan for the next fiscal year. This includes a $1.75 billion investment in housing production aimed to curb a housing shortage that has plagued the state for years. One change from this revised budget, compared to the original released in January, is that the revised version refocuses $500 million on programs “to remove barriers to building mixed income housing”.

California is aimed to spend $1 billion on addressing homelessness, double the amount originally proposed in January.

“The homeless issue is out of control,” Newsom said. “This homeless issue, like the housing issue, is a crisis. It is a stain on the state of California”

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: Mortgage rates, housing shortage, Homelessness, Gavin Newsom, Housing Investment, California Budget, Governor Gavin Newsom, Governor of California

California rent control battle rages on

Posted by Mehran Aram on Mon, May 6, 2019 @ 05:05 AM

A new effort is underway in the state capitol to prohibit landlords from raising rent by more than 5 percent above the Consumer Price Index. The bill passed the Assembly's key Housing and Community Development Committee by a 6-1 vote last week.

Those opposed to the legislation say that Bill 1482 could disrupt the natural market and financially hurt property owners. California voters rejected Proposition 10 last November which would have implemented statewide rent control measures.

Gov. Gavin Newsom has stated that he favors measures to control rent hikes which he believes would help quell a housing affordability crisis in the State.

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: California, Mortgage rates, Housing Affordability, Rent Control, Bill 1482, Housing and Community Development Committee, Gavin Newsom