ARAMCO Report - The Mother of ALL Mortgage Blogs!

Sellers dropping prices

Posted by The Aramco Group on Tue, Oct 9, 2018 @ 08:10 AM

In yet another sign that the housing market may be shifting to one that favors buyers, a Redfin report for September shows that the share of homes with price drops reached a record high. According to the online real estate site, more than one in four home-sellers dropped their prices last month, the highest level on record since Redfin began tracking this metric in 2010.

“After years of strong price growth and intense competition for homes, buyers are taking advantage of the market’s easing pressure by being selective about which homes to offer on and how high to bid,” said Taylor Marr, Redfin senior economist. “Many [sellers] are finding their homes are sitting on the market without much interest until they start reducing prices.”

The price drops across the housing market may be a relief to house hunters who are looking for a way to offset recent increases in mortgage rates. 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 4.15 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: Sellers, home price appreciation, real estate, Mortgage rates

ARAMCO Report - Tuesday June 2, 2015

Posted by The Aramco Group on Tue, Jun 2, 2015 @ 19:06 PM

Homeowners overvalue their homes 

Homeowners may be overly optimistic when estimating the value of their homes according to a new study.

The results of an examination published in the Journal of Housing Economics presented evidence from across the country that homeowners overestimate the value of their properties by around 8 percent on average.

The authors of the study found that nearly all homeowners overvalue their homes, and overestimations ranged from 3.4 percent to 12.7 percent. The researchers concluded that the cause was often due owners’ miscalculating the amount their homes appreciated over time.

This is something to keep in the back of one’s mind while attempting to buy or sell a home in the hot San Diego market. Realtor.com ranked the San Diego metro area as the 11th hottest housing market in the country in May. They looked the 300 largest metro areas, and they based their grades on two factors: demand, measured by how many people looked at each listing, and supply measured by how fresh or stale listings were in each area.

People looking to purchase a home or refinance their mortgage will find that conforming no point 30-year mortgage rates average 3.875 percent while 15-year rates average 3.125 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: home prices, 30 year fixed rates, home price appreciation, Realtor.com, Journal of Housing Economics

ARAMCO Report - Friday May 29, 2015

Posted by The Aramco Group on Fri, May 29, 2015 @ 15:05 PM

America says it still likes homes as an investment

Americans’ views toward their housing as an investment haven’t changed much over the last year, and the majority of people still think it's a prudent put to their money.

The New York branch of The Federal Reserve found that over 60 percent of renters and owners think that buying property in their zip code is a good investment, while only 10 percent thought otherwise.

Households’ expectations about how good of an investment that purchase might be are about the same as they were last year. The NY Fed’s 2015 housing survey, released on 5/28/15, also revealed that U.S. households, on average, continued to expect 4.4. percent appreciation returns.

The possibility of rising interest rates in the next twelve months will have some influence on these expectations, and The Fed is going to choose which moment to follow through with raising interest rates later in 2015.

People who think it's a good idea to buy a home in a San Diego zip code right now will find mortgage rates near all-time lows with conforming no point 30-year fixed rates averaging 3.875 percent and 15-year rates averaging 3.125 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: home prices, investment, Interest Rates, 30 year fixed rates, home price appreciation, Federal Reserve of New York,

ARAMCO Report - Thursday May 28, 2015

Posted by The Aramco Group on Thu, May 28, 2015 @ 16:05 PM

Homeowners control San Diego’s inventory

Homeowners currently have more influence on San Diego’s housing market than they have in years.

Real estate investors are more active when they are able to find distressed properties at a discount, but current foreclosure rates are near zero.

According to CoreLogic on 5/25/15 the foreclosure rate in San Diego in March 2015 was less than one half of one percent of all outstanding mortgages. The rate decreased 0.1 percentage points to 0.42 percent in March and stayed below 0.5 percent in April.

New housing project starts have been low until recently also, and the units currently under construction will take months to enter the market.

Therefore, it’s San Diego’s homeowners who are benefiting from controlling the limited inventory in the current sellers’ market where prices have risen around 1.2 percent in the last couple of months according to S&P Case Shiller.

Demand is still strong as can be seen in the rise in national mortgage applications for purchase which were up 1.2 percent in the week that ended May 22, 2015, despite that week’s slight rise in mortgage rates.

Mortgage applicants will find that conforming no point 30-year mortgage rates average 3.875 percent while 15-year rates average 3.125 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: home prices, homeowners, S&P Case Shiller, inventory, 30 year fixed rates, foreclosure, foreclosures, Investors, home price appreciation, foreclosure inventory, Home Inventories

ARAMCO Report - Thursday May 21, 2015

Posted by Mehran Aram on Thu, May 21, 2015 @ 10:05 AM

Rising home prices may keep homeownership elusive for youth

Prices for existing homes raced higher across the US in April 2015 according to the National Association of Realtors (NAR), but homeownership rates cannot go up unless average household incomes increase too. This may exclude some millennials and other first-time homebuyers from the benefits of homeownership.

Homes became less affordable for first-time homebuyers as the median home price in the US went up 8.9 percent between April 2014 and April 2015, but average wages only increased 2.2 percent over the same time period according to the Bureau of Labor Statistics.

However, average wage growth may be poised to accelerate barring any currently unforeseen challenge to the national economy. Low unemployment rates and falling unemployment assistance claims—announced 5/21/15—signify a solidifying labor market. Unemployment nationally is as low as it has been since May 2008 (5.4 percent), and the four-week moving average for jobless claims fell to its lowest point since 2000.

First-time homebuyers may find that the 3.5 percent down payment, low-rate FHA mortgage would be the right way for them to transition into homeownership. Rates are still near all-time lows.

 

Conforming no point 30-year fixed mortgage rates average 3.875 percent while 15-year rates average 3.125 percent.

Topics: home prices, home ownership rate, 30 year fixed rates, home price appreciation, home affordability

ARAMCO Report - Wednesday March 18, 2015

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

Gap Between Housing Costs and Average Household Income Widening

There is a gap between rental costs and average household income, and it is widening. Typical rents have risen 15 percent across the country over the last five years, but income for renters is up by only 11 percent over the same period. Rents as growing portions of incomes—especially in high-cost areas—make it difficult for would-be first time buyers to save an adequate amount for a down payment. Housing starts need to rise if this trend is to be reversed, and February 2015’s housing starts statistics are down, but new permits granted have risen however. That means there’s hope that spring snowmelt will bring a much-needed defibrillation to home construction. Conforming no point 30 year fixed mortgage rates still average 3.875 percent with 15-year rates closer to 3.125 percent. And now for something completely different: Actors working as characters at Disney theme parks must go through an autograph training session so signatures are always the same.

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: residential construction, Disney, Housing Market, inventory, 30 year fixed rates, first-time buyers, Mortgage rates, renting, home price appreciation, homes

ARAMCO Report - Wednesday February 11, 2015

Posted by The Aramco Group on Tue, Feb 24, 2015 @ 11:02 AM

According to a report from the National Association of Realtors home price appreciation picked up speed in the 4th quarter of 2014 with the median price of existing homes up 6% compared to the previous year, 86% of the metro areas covered, registered increases in price. Meanwhile last week’s MBA index of home mortgage applications showed a 9% drop in refinance and purchase activity. Conforming no point 30 year fixed mortgage rates average 3 3/4ths with 15 year rates closer to 3 1/8th. And now for something completely different… Did you know that machine spun cotton candy, notoriously bad for the teeth, was co-invented by a dentist in 1897? It was originally called “Fairy Floss.”

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, MBA, National Association of Realtors, Dentist, Cotton Candy, home price appreciation

ARAMCO Report - Tuesday August 12, 2014

Posted by Mehran Aram on Tue, Aug 12, 2014 @ 17:08 PM

According to the National Association of Realtors nationwide home price appreciation in the 2nd quarter continued to moderate and is now at its slowest, pace since 2012. But the median price during the 1st quarter year over year still rose by 8.3%. Inventories also rose 6.5% from a year ago. Meanwhile mortgage, rates were unchanged with conforming no point 30 year fixed rates still average 4 1/4% with 15 year rates closer to 3 1/4.

And now for something, completely different: Did you know in the game of Monopoly, the most landed on property where rent is charged is Illinois Avenue!

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 purchase, 30 year fixed rates, ARAMCO, National Association of Realtors, Illinois Avenue, Monopoly, home price appreciation