ARAMCO Report - The Mother of ALL Mortgage Blogs!

Homeowner equity levels continue to climb

Posted by Mehran Aram on Tue, Jun 11, 2019 @ 05:06 AM

Despite a recent slowdown in price appreciations, homeowners with a mortgage in the U.S. saw their equity levels shoot up by 5.6 percent on average over the past year. This equates to $6,400 per homeowner according to the Home Equity Report released last week by CoreLogic.

Nevada once again led the nation with the biggest increase in equity levels, climbing $21,000, followed by Idaho ($20,700) and Wyoming ($20,300). Californians saw an average increase of $4,116.

These increases have pulled more homeowners out of negative equity territory. The number of households who owe more on their mortgage than their current home’s value has dropped to just 4.1 percent of all mortgage properties.

Meanwhile, 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: homeowners, CoreLogic, negative equity levels, home equity, homeownership, Mortgage rates, Underwater Homes, Equity Rich, households

Nearly half of renters wish they were owners

Posted by Darius Aram on Mon, Jun 3, 2019 @ 05:06 AM

Despite the increased cost, repairs, taxes and insurance, 45 percent of renters regret renting instead of being able to buy a home. This is more than five times the share of homeowners (8 percent) who regret buying instead of renting. This information comes from a survey conducted by Zillow Research.

The top two regrets that renters have include not being able to build equity in a property and not having the ability to customize or improve their home. This was followed by feeling that that rental prices are simply too high.

87 percent of renters have regrets about their current home compared to 72 percent of people who own. San Diego ranked near the top, with 91 percent of renters reporting at least one regret.

Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 4.00 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: San Diego, homeowners, home equity, Zillow, homeownership, Mortgage rates, Renters, San Diego Housing Market, Rental Prices

Cash-out refinances on the rise

Posted by Mehran Aram on Wed, Apr 17, 2019 @ 06:04 AM

Homeowners in the U.S. are sitting on $5.7 trillion in equity borrowing potential according to Black Knight, a mortgage-data and technology company. This is a record high. When coupled with low mortgage rates, it’s not surprising that cash-out refinances are near their highest levels since 2007. Freddie Mac has previously reported that approximately 8 out of every 10 refinances happening have the homeowner taking cash-out of their home’s equity.

Some experts predicted that cash-out refinances would drop after new federal tax laws eliminated the interest deduction for equity loans unless the money is spent on home improvements that will raise property value. However, any declines due to these changes in tax law have apparently been countered by favorable borrowing rates.

Today, 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 equity, Freddie Mac, Black Knight, Mortgage rates, Property Values, cash out refinance, Homeowner, Federal Tax Laws

Homeowner equity levels still climbing

Posted by Mehran Aram on Sun, Mar 10, 2019 @ 08:03 AM

Homeowners are sitting on near record-levels of equity according to a new report, gaining an average of 8.1 percent in the last year alone. As a result, homeowners have greater access to ready cash in the form of a home equity line of credit (HELOC).

Equity levels climbed $9,700 in 2018 compared to the year before but California residents saw much higher increases. Property owners in the Golden State saw their home equity levels climb an average of $19,600 last year. Nevada led the nation with gains topping $29,400 on average.

The increases in equity could mean an increased number of home equity loans this year, particuarly as interest rates slide.

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: California, home equity, Mortgage rates, California Housing Market, Homeowner, Homeowner Equity

Home equity has come ‘roaring back’

Posted by The Aramco Group on Mon, Oct 22, 2018 @ 14:10 PM

American homeowners are sitting a record amount of equity according to new research, putting many in a prime position to tap into it. Home equity – the amount a property is worth above the amount owed on it – is estimated to be a cumulative $14.4 trillion. This is an all-time high according to a report by TransUnion and more than double the low of $9 trillion during the height of the recession.

“Consumers have been building up that equity over the last seven years or so,” according to Joe Mellman, senior vice president at TransUnion. “It really has come roaring back.”

With interest rates on credit cards near 20 percent or even higher in some cases, establishing a home equity line of credit or a cash out refinance can be a less expensive way for borrower to get a hold of much needed cash.

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: home equity, refinance, Mortgage rates, home owners, HELOC

It pays to be a homeowner

Posted by The Aramco Group on Tue, Sep 25, 2018 @ 15:09 PM

Homeowners are seeing nearly records amount of wealth in the form of home equity according to a new report by CoreLogic. Nationally, the average homeowner with a mortgage experienced a $16,200 climb in equity during the second quarter on a year-over-year basis. The increase represents a 12.3 percent annual increase, among the fastest rates recorded in the past several years.

Californian’s earned even more, unsurprising considering the state’s staggering home prices. Golden State homeowners gained an average of $48,800 in equity – the highest in the nation. Oklahoma saw the smallest gains – just $2,226.

Overall, CoreLogic is reporting that homeowner equity has increased a whopping $981 billion since the second quarter of 2017.

Today, conforming no-point 30-year fixed mortgage rates are averaging 4.625 percent, 15-year rates are near 4.125 percent and the 5-year ARM is averaging 4.125 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: homeowners, CoreLogic, home equity

ARAMCO Report - Thursday April 23, 2015

Posted by The Aramco Group on Thu, Apr 23, 2015 @ 15:04 PM

Tepid national housing news

The number of people who applied for state-level unemployment went up slightly—by 1,000—to 295,000 in the week that ended April 18, 2015 according to the U.S. Labor Department.  This is small compared to the number of people currently receiving ongoing unemployment assistance: 2.31 million, the lowest level since December 2000. This could have a minor impact on the long-term real estate and mortgage markets because public assistance recipients tend not to enter the housing market in the short-term.         

Yesterday the ARAMCO Report shared that completed home sales in California were up 33 percent in March compared to February 2015. However today’s report from the Commerce Department stated that national sales dropped 11.4 percent on average to 481,000 in the same period.

RealtyTrac reported that the number of homeowners nationwide whose home equity is seriously underwater went up .4 percentage points in Q1 2015 compared to Q4 2014. While this is only a slight increase, it is the first quarterly increase since Q2 2012.

Conforming no point 30-year fixed mortgage rates average 3.75 percent while 15-year rates average 3.0 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, unemployment, unemployment benefits, home equity, 30 year fixed rates, unemployment rate, Underwater

ARAMCO Report - Monday August 11, 2014

Posted by Mehran Aram on Mon, Aug 11, 2014 @ 17:08 PM

The lack of any new market moving economic data and no worsening of geopolitical risks, left mortgage rates unchanged. Conforming no point 30 year fixed rates averaging 4 1/4% with 15 year rates closer to 3 1/4. According to Transunion, nationwide $50 – 79 billion in home equity lines of credit with interest only payments are at a heightened risk for default in coming years, as they near the end of their draw period and will require principle and interest payments.

And now for something, completely different: You may have known that President Ronald Reagan worked as a lifeguard in his youth. But did you know that as a lifeguard he saved over 77 lives?

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: Aramco Report, and now for something completely different, home purchase, Ronald Reagan, home equity, 30 year fixed rates, Transunion, interest, economic data