ARAMCO Report - The Mother of ALL Mortgage Blogs!

Millennials want to own – they just can’t afford it

Posted by Mehran Aram on Sat, Sep 7, 2019 @ 07:09 AM

Although an increasing number of young adults say home ownership is among their top goals, data shows that unaffordable prices and mounting student loan debt is making this goal harder to achieve. In a survey conducted jointly by CoreLogic and RTi Research shows that more than a quarter of millennials are interested in purchasing a home within the next year.

The increase in Millennial home buyers entering the market putting increased pressure on home prices as well.

“A growing number of millennials are expressing an interest in buying homes, reinforcing the theory that this cohort is continuing to engage within the housing market,” said Frank Martell, president and CEO of CoreLogic. “But with so few homes available for sale, the imbalance has created an affordability crisis that is getting worse every day.

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: Millennials, home purchase, Housing Market, CoreLogic, home ownership, Mortgage rates, Housing Affordability, Millennial Homeowners, Affordability, Young Adults

ARAMCO Report - Wednesday March 4, 2015

Posted by The Aramco Group on Thu, Mar 5, 2015 @ 11:03 AM

According to the US Census Bureau, homeownership rates in 2014 were the lowest they have been in over 20 years. Those who are 65 or older had an extremely high homeownership of 79.5%. This highlights the significance of the upcoming FHA changes to the reverse mortgage program in April. Meanwhile last week mortgage applications rose as interest rates dipped. Conforming no point 30 year fixed rates average 3 7/8ths with 15 year rates closer to 3 1/8th. And now for something completely different… You probably didn’t know that the letter “E” used to designate a failing grade! But it was phased out by the 1930’s over fear of students interpreting it to mean “Excellent”! 

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: Interest Rates, home ownership, home ownership rate, 30 year fixed rates, FHA

ARAMCO Report - Tuesday August 19, 2014

Posted by Mehran Aram on Tue, Aug 19, 2014 @ 17:08 PM

According to the U.S. Department of Commerce, construction on new homes jumped by 15.7% in July and reached its highest level in 8 months, further evidence of a recovering housing market. The jump in housing starts exceeded economists’ expectations on Wall Street. Meanwhile the pace of inflation at the consumer level cooled following a sharp increase earlier in the year. Conforming no point 30 year fixed mortgage rates average 4 1/8th with 15 year rates closer to 3 1/4%.

And now for something completely different: Did you know that there is only one type of rock that can float in water? It’s the volcanic rock, also known as pumice!

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 Financial, Aramco Report, and now for something completely different, home purchase, home ownership, Wall street, Floating Rock, Construction, new homes, Pumice, refinance, U.S. Department of Commerce

ARAMCO Report - Monday July 7, 2014

Posted by Mehran Aram on Mon, Jul 7, 2014 @ 17:07 PM

Not a whole lot of movement in the bond market, leaving mortgage rates unchanged. Conforming no point 30 year fixed rates average 4 1/8th with 15 year rates closer to 3 1/8th, both at their lowest level of the year. Meanwhile according to the National Association of Realtors, home price appreciation is slowing with the median expected price increase this year at 4%. In states such as California and 5 other states appreciation rates are expected to be in the 5 to 7% range.

And now for something completely different: Did you know that Tug of War was a team event in the summer Olympics continuously from the year 1900 to 1920? The U.S. won all three medals in 1904!

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, home purchase, Olympic Games, California, home ownership, bond market, 30 year fixed rates, National Association of Realtors, Olympic

ARAMCO Report - Thursday May 29, 2014

Posted by Mehran Aram on Thu, May 29, 2014 @ 17:05 PM

For the first time in 3 years, the U.S. economy contracted in the first quarter of 2014 by 1 % most likely because of an unusually harsh winter.  But here in spring, the economy appears to be rebounding based on some of the recent reports.  Mortgage rates remain at their lowest level since November of last year with conforming no point 30 year fixed rates averaging 4 1/8 th and 15 year rates closer to 3 1/8 th.  Meanwhile pending home sales in April rose by 4/10 ths of a % for existing homes.

And now for something completely different: The White Sox won their first World Series Championship 108 years ago in 1906, defeating their crosstown rivals Chicago Cubs 4 to 2.

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, home buying, home purchase, Chicago, Mehran Aram, Chicago Cubs, World Series, home ownership, Southern California, White Sox, 30 year fixed rates, Baseball, home selling

Healthy vs. Sick Housing Markets: ARAMCO CEO Mehran Aram talks with Roger Hedgecock- May 28, 2014

Posted by The Aramco Group on Wed, May 28, 2014 @ 15:05 PM

Former San Diego Mayor and syndicated radio host Roger Hedgecock discusses various housing markets across the country, where its booming and where it isn't with The ARAMCO Group's CEO Mehran Aram in this weeks spot on the Roger Hedgecock Show. Click below to listen!:

Roger Hedgecock interviews Mehran Aram 5-28-14

 

About Mehran Aram: 

Mehran Aram is the President and CEO of The Aramco Group, and has over 20 years experience in the mortgage/real estate industries. A graduate of USD School of Business, he has made a name for himself by writing and producing The ARAMCO Report, his one minute daily radio/tv analysis of the mortgage and real estate markets, every day for 20 years. The ARAMCO Report is now syndicated across the Radio America Network and is heard in more than 100 markets daily. The TV version of The ARAMCO Report is now featured on it's second season following every weekday San Diego Padres game, on FOX Sports SD. Mehran is a guest contributor weekly on the nationally syndicated, Roger Hedgecock Show as well being featured on Mark Larson and George Chamberlin's shows. More recently he became one of less than 100 Certified Reverse Mortgage Professionals, CRMP, in the nation and hosts monthly workshops to educate seniors and boomers on retirement and the reverse mortgage.

 

About Roger Hedgecock:

Roger Hedgecock, the former Mayor of San Diego, and currently one of talk radio’s biggest names, has a nationally syndicated radio show that airs 3pm to 6pm weekday afternoons. From San Diego to New York, Americans across the country listen to Roger Hedgecock not only for his political insight, but also for his proactive approach across various issues. 

Topics: Aramco Financial, Aramco Report, home buying, The Aramco Group, San Diego, Mehran Aram, Roger Hedgecock, home ownership, Radio America, economic data, Mortgage rates

ARAMCO Report - Friday May 23, 2014

Posted by Mehran Aram on Fri, May 23, 2014 @ 17:05 PM

According to the U.S. Department of Commerce, sales of new single-family homes rose over 6% in April, indicating a strengthening housing market. That being said, first-time homebuyers are continuing to struggle with a diminished inventory, as the number of homes listed for sale on Zillow was down almost half a percent from last year. Meanwhile, the bond market continues its sideways movement, leaving 30-year fixed rates at 4.25% and 15-year rates closer to 3.25%.

And now for something completely different. While Memorial Day often marks the beginning of summer, let us not forget to remember the hundreds of thousands of heroes who have selflessly given their own lives to ensure the freedom and security of our great country.

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, Memorial Day, heroes, freedom, U.S. troops, home ownership, 30 year fixed rates, homebuyers, Zillow, refinance, U.S. Department of Commerce, security

San Diego Real Estate Market Forecast: HOT! HOT! HOT!

Posted by Craig Sutliff on Sat, May 3, 2014 @ 16:05 PM

Real Estate Market Forecast:  HOT! HOT! HOT!
To say the real estate market in San Diego is HOT, is an understatement. In just the past thirty days, the real estate market has really turned around in a night and day transformation. Many homes are now selling in a matter of days and the times of having MULTIPLE offers on each home are back. The Spring selling season is in full-swing, and with a bang--It truly is a seller’s market out there!

A positive trend is that there has been a 7% increase in the number of homes listed for sale, YTD. Overall, YTD closed sales are down 19% from last year and the average days on the market for a home has also decreased by 16%, which means they are selling a lot faster.  

Throughout 2013 a main complaint was a lack of homes for sale, and the high number of all-cash investors scooping up properties. We saw a very significant activity in the real estate market from January 2013 through September of 2013 with September hitting a median home value of $419,000 for Attached and Detached homes combined in San Diego County.

There was a higher level of nervousness leading up to the end of 2013.  I don’t think it can be understated that there was a palpable nervousness in the market with the governments bungling of the Obamacare rollout.  In addition to a seasonal decrease in sales, people were very nervous about the overall economy and the sharp rise in home values, and the market needed a little break. Then from September 2013 through February 2014 the market cooled off, sales volume dropped and home prices moderated and even dropped for a few months, ending February 2014 with a median home price of $404,700. 

Then came March. Although overall sales volume was down, the average median sales price for all homes, attached and detached increased 7% IN ONE MONTH up to $427,250. March sales of single- family residences, which excludes “attached” properties such as condos and townhomes, SURGED 32% over the previous month!  With the median sales prices for single-family residences hitting $490,000 which is the highest point since December of 2007. To say there is a bull-market in San Diego real estate sales, is an understatement.  If you are looking to sell your home, NOW is a perfect time. 

Additionally, even though prices have increased, rates are at historic lows and buyers are entering the market because they are listening to the Federal Reserve Chair Janet Yellin telling us that interest rates will be increasing.  They started last year with a measured decrease in their bond-buying activity, and have indicated they will continue to pare back.  The only thing that has really kept interest rates from spiking higher recently is the instability in the Baltic region with Russia and the Ukraine.  That is creating a flight to safety for investors into the US Treasury market.  Now, I don’t see any quick resolution to this situation, so that will keep rates low for the time being.  But if it is resolved peacefully, the proverbial “music will have stopped,” rates will increase, and you don’t want to be the one standing around without a chair.

Providing some relief is a 7% increase, YTD, in the number of newly listed homes for sale. I think once the numbers for April are released we will see further evidence of the HOT sellers market in San Diego.

For more information on The Aramco Group’s Real Estate call 877-700-0942.

Learn More

Topics: home prices, The Aramco Group, San Diego, Loans, real estate, California, home ownership, Aramco Properties, home selling, low rates, Selling

Renting Versus Buying: Which One Makes Sense for You?

Posted by The Aramco Group on Tue, Mar 25, 2014 @ 06:03 AM

Your home is more than just your haven—it represents a huge chunk of your living expenses. On average, Americans allot 26 percent of their monthly budgets on housing, whether they rent or own their homes.

After the housing market crash that began in 2008, many people became afraid of the housing market, opting instead to rent short term until the market stabilized or until they could get back on their own financial feet.

Though many years have passed since the bleakest days of the housing market, some of the anxiety remains. Cost-wise, is it smarter to rent a home or own one? The answer is more complex than most people realize and depends on a variety of factors. Here are some things to consider when you analyze your own living situation.

Compare ALL the Costs

Many prospective home buyers look at a projected mortgage and compare it to what they pay in rent to determine which makes more financial sense. This is only part of the comparison process though.

Renters should think about what initial costs they may have if they buy a home, like a lawnmower or a new fence. Renters should also consider maintenance costs. There are also property taxes, insurance, and any home owner association (HOA) fees to consider.

Buying a home has its own financial benefits though. The money that goes into the mortgage and any maintenance or upgrades can feasibly be made back eventually, whereas rental payments are never returned.

Know Your Own Intentions
Most future homeowners go into the process with the mindset that they will make all their mortgage payments on time, and then sell the home for a hefty profit when they retire or need the cash.

While that could certainly happen, you also need to consider the reason your home price will increase over time: the cost of living will too. It is never wise to make a home an entire nest egg, particularly since you have no way to predict the market trends around the time you will want to sell it.

The smartest move for people who view their home as an investment is to meet with a financial planner and set up some other funds to diversify their holdings.

Consider Your Age

In general, the younger you are the more beneficial renting is—particularly if you have not decided on a permanent location yet. A young person, for example, may pass up a lucrative job promotion if she owns a home rather than advance her career.

On the other hand, a young man in his 20s or early 30s who is already happy where he lives and works can avoid years of thrown-away rent money by making the decision to buy early on.

An older, more established person (in her 30s and up) may find more financial comfort in purchasing a home, and also more satisfaction in being able to take that step in life.

Decide How Long You Will Live There

This ties into the last point and is an important question for people of all ages. Perhaps you are not planning to move out of your area or change jobs within the next decade or so, but will your life change in other ways? Will you grow your family? Will an aging parent move in with you? Will you simply outgrow your space? If you are not sure where you will be in five years, or what your life might look like, renting may still be a smart option.

On the other hand, if you spend those five years renting a place that is not truly your own, and THEN decide to buy, those are investment dollars that are forever lost. No one can predict the future, but before you decide to buy or rent, you should do some educated forecasting and figure out which decision is the best fit.

Figure Out What Will Bring You the Most Peace

This is a factor that will be different for every person. For most, there is a lot of satisfaction that accompanies homeownership. It is a way to put down roots and a source of stability in an otherwise hectic life.

Every homeowner will have moments of house-related financial stress though, whether it is a maintenance issue that needs to be addressed or a rise in property taxes. Those who decide to own their home should be prepared to roll with it and flow through the challenges, remembering the valuable lessons learned and to reach out for help from friends, family, and trusted experts like The ARAMCO Group.

When it comes to homeownership, there is not one right or wrong answer or a formula that can be applied to every situation. Do some research on your own, and meet with a financial planner to discuss your future financial goals. From there, you can best determine if homeownership is right for you.

Topics: home buying, home ownership

Various Loan Options For Your Down Payment

Posted by The Aramco Group on Wed, Nov 13, 2013 @ 16:11 PM

When purchasing a home, one of the main things to consider should be a pre-approval
letter from a reputable mortgage company. A pre-approval letter will help guide one of the Down Payment, Home Loans, Conventional Loan, VA Loan, Federal Housing Administrationlargest financial decisions you will make in your life. One of the first questions that should be addressed in the qualification process is the down payment. There are many loan options with varying down payment requirements. These vary from a VA loan with a $0 down payment, to an investment property needing a minimum of 20% down.

One of the most common loan options for first time borrowers has been a FHA loan. This has been the product of choice for many homebuyers that are restricted to a limited down payment. The down side to a FHA loan is the mortgage insurance. Although FHA allows a low down payment of 3.5% the cost of mortgage insurance can sometimes divert borrowers to another loan product. FHA has an upfront mortgage insurance fee of 1.75% and an annual mortgage insurance fee of .40% to 1.45%, depending on the loan amount.

Another popular loan product is the “Lender Paid Mortgage Insurance” loan where the down payment can be as little as 5% with no upfront or annual mortgage insurance charged to the borrower. In exchange for not being charged mortgage insurance, the LMPI loan has an interest rate of about .40% higher than a conventional interest rate if the borrower was going to have a 20% down payment.

An option that has become even more popular ever since FHA increased the term of mortgage insurance from 5 years to the full 30 year term, is the conventional loan with mortgage insurance. The conventional loan with mortgage insurance allows the borrower a choice to pay the mortgage insurance upfront or pay as part of the monthly payment. One of the nice features of this product is once a borrower has 20% equity, either by appreciation or paying down the loan, the borrower can order an appraisal and have the mortgage insurance eliminated.

The most attractive interest rates and loan products are available when a borrower has 20% for the down payment however these three loan products can be great financial tools when looking to purchase a home with a limited amount of available funds for the down payment.

 

Topics: Down Payment, Interest Rates, Aramco Mortgage, home ownership, FHA, Loan Options