ARAMCO Report - The Mother of ALL Mortgage Blogs!

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

Homeowner tax breaks for 2018 still up in the air

Posted by Mehran Aram on Thu, Feb 7, 2019 @ 05:02 AM

Although much of the focus is on border security, Congress has another big decision to make in the coming months: the renewal of certain tax breaks. Homeowners who itemize their deductions may still deduct the interest they paid on their home loan in 2018 but only up to certain limits.

In a tax code change that could disproportionately affect those living in pricier markets like California, the mortgage interest deduction is now capped at $750,000, down from $1 million for married couples. This applies to new home loans originated in 2017 or later. The new law also eliminates unlimited interest deductions for both new and existing home equity loans unless the loan was taken out to pay for property renovations.

Borrowers who purchase a home with a less than 20 percent down payment are often straddled with private mortgage insurance. In the past, some of these premiums were deductible however Congress has yet to extend this tax break for this tax season.

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 purchase, homeowners, Mortgage rates, California Housing Market, Mortgage Interest Deduction, Mortgage Interest, Taxes, Tax Break, Deductions, Home Loans

ARAMCO Report - Monday May 25, 2015

Posted by Mehran Aram on Mon, May 25, 2015 @ 11:05 AM

Purchases out pace refinances, first time since December

More people sought mortgages in order to purchase a home during the month of April 2015 than did those who were looking to refinance according Ellie Mae — a mortgage processing company. This is the first month since December 2014 that purchases outpaced refinances.

Approximately 52 percent of mortgages were for purchases in April as opposed to the 47 percent that were for refinances. 

Purchase originations should continue to outpace refinance applications as low interest rates tick up over the course of 2015. This is because the financial reasons that lead households to purchase a new home are different than the reasons households might seek to refinance. 

Fed Chair Janet Yellen again corroborated on 5/22/15 that it will be “appropriate” for the Fed to raise interest rates later this year. This one of the primary reasons purchase originations should continue to outpace refinances for the rest of 2015 as a healthier economy and stronger labor market should offset potential homebuyer concern that mortgage rates will go up in the future.

Potential homebuyers or people currently looking to refinance will find current mortgage rates near all-time lows as conforming no point 30-year mortgage rates average 3.875 percent while 15-year rates average 3.125 percent.

Topics: home purchase, 30 year fixed rates, Mortgage applications, Home refinance,

ARAMCO Report - Thursday May 7, 2015

Posted by The Aramco Group on Thu, May 7, 2015 @ 14:05 PM

A Place in the Market for Flipped Homes

Relatively high gross returns on investment demonstrate that there is still a place for house flipping in the national and local real estate markets. RealtyTrac revealed that 4 percent of total single-family home sales, or 17,309 homes, were flipped in the first quarter of 2015. San Diego County accounted for 6.1 percent of the total volume or 1,055 homes.

There is a demand for move-in ready houses that have been retrofitted for modern tastes especially as there is a shortage of new housing starts recently and inventories are growing slim.

The average gross profit, nationally, for completed flips in the first quarter was $72,450, up from $65,290 in the last quarter of 2014. The average gross return on investment (ROI) was 35.1 percent for completed flips in the first quarter, which was only slightly down from 35.3 percent in the fourth quarter of 2014.

Those looking to sell their home and then purchase a new one will find mortgage rates near an all-time low. Conforming no point 30-year fixed mortgages are averaging 3.875 percent while 15-year mortgages are 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.

Ask Mehran Aram

 

Topics: home purchase, RealtyTrac, Flipping Homes, 30 year fixed rates, home selling

Buying a New Home with a Reverse Mortgage

Posted by The Aramco Group on Thu, Apr 23, 2015 @ 13:04 PM

Did you know there is a way to buy a home and never make a mortgage payment?

Imagine this scenario:

You have $200,000 and you are looking for the perfect home that suits your retirement.

You are looking forward to buying your next home outright because you have spent a lifetime making monthly mortgage payments and to continue to would be a drag.

You are scared that $200,000 is not enough to find a home in San Diego.

You and your spouse engage a realtor, and look around the San Diego area for a perfect home or condominium, and you are disappointed that you cannot find any homes that…

1) Suit your family’s needs,

2) Are in your price range, and

3) Are in the neighborhood you want them to be.

Is this home the right size?

What are you to do?

Consider a using a reverse mortgage as a tool to get the right home.

If you or your loved one are over the age of 62, then you might qualify for a Reverse Mortgage for Purchase. It could expand your buying power and you still won’t have to make mortgage payments — if you do not want to!

The loan amount one can qualify for with a Reverse Mortgage for Purchase is based on the age of the youngest borrower. If the youngest borrower is 62 or over, then the loan can be the lesser of 52% the home’s appraisal value, the purchase price or the maximum lending limit.

Let’s go back to our situation where you and your spouse have $200,000 and are looking for the perfect San Diego home to right-size into retirement. If you and your loved one are 62 and qualify for a reverse mortgage, then 52% of the appraised value of the home you find can be covered by the reverse mortgage! 

You find the perfect home for $390,000. You could never afford it without a loan (or a winning lotto ticket), but with your reverse mortgage covering 52% ($202,800) now you can use $187,200 of your money to buy a home worth nearly twice as much as you could have purchased in cash.

Even better: the Reverse Mortgage for Purchase works just like a normal Reverse Mortgage. You retain the title to the home, and the loan does not come due until the last borrower leaves the home. The loan is non-recourse, so the bank can never come after you, your heirs or your estate regardless of what happens in the housing market.

You got everything that you set out to accomplish: you found a home that…

  • Suits your family’s needs,
  • Is in the right neighborhood,
  • Requires NO monthly mortgage payments,
  • And was within reach of your original budget!

You got everything you were looking for with the help of a reverse mortgage!

Look around you for a moment, and try to see the nooks and crannies of your home in a new light. Would you like to spend your future in a home that is better suited to your needs? If so, call ARAMCO Financial at (760) 438 – 2552 to see if a Reverse Mortgage for Purchase is right for you. Or sign up for our free educational workshop at www.ARAMCO.biz.

Don’t just downsize, right-size with a reverse mortgage!

Topics: Reverse Mortgage, HECM, home prices, home purchase, San Diego, purchase, Price, Reverse Mortgage for Purchase, Home Purchasing, HECM for Purchase

ARAMCO Report - Thursday April 9, 2015

Posted by The Aramco Group on Thu, Apr 9, 2015 @ 14:04 PM

San Diego Homes are Moving Quickly

San Diego is the 10th fastest housing market in the country with a median of 43 days between listing and sale according to the National Association of Realtors. The median amount of time nationwide is currently 89 days — 13 percent lower than a year ago. However, the median sale price in San Diego County was $39,000 less than the median list price as of February, 2015 according to the Zillow Home Value Index.  Meanwhile, it seems that more individual home-buyers are re-entering the housing market. Cash home sales are down nationally for the 25th month in a row, and since the majority of cash sales are by investors speculating in the real estate market a decline in cash sales reflects individual home buyers re-entering as home prices increase. According to CoreLogic, cash sales comprised 38.9 percent of all housing transactions in January 2015. That is compared to the 25 percent share of total home sales that were conducted in cash prior to the housing crisis.

Current 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, home buying, home purchase, homeowners, Housing Market, 30 year fixed rates, homebuyers, homeownership, housing recovery

ARAMCO Report -Monday September 29, 2014

Posted by Mehran Aram on Mon, Sep 29, 2014 @ 17:09 PM

August pending home sales were down 1% from July, further evidence of an uneven housing recovery. This according to the National Association of Realtors which regularly reports on home purchases under contract which have not closed escrow yet. Bond yields were slightly lower on this news and other data reflecting tame inflation and in reaction to recent weakness in stocks. Conforming no point 30 year fixed mortgage rates average 4 1/4% with 15 year rates closer to 3 3/8ths.

And now for something completely different: Did you know that since 1945 all British tanks come equipped with tea making facilities?

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, and now for something completely different, home purchase, bonds, tanks, tea, 30 year fixed rates, Bond yields, National Association of Realtors, Housing, August, British, escrow

ARAMCO Report -Monday September 22, 2014

Posted by Mehran Aram on Mon, Sep 22, 2014 @ 17:09 PM

Weaker than expected economic data and concerns about China’s economic outlook was supportive of the bond market. Existing home sales fell 1.8% in August and year over year were down 5.3%. And the Chicago Fed’s National Activity index also fell in August. Meanwhile higher level of student debt is expected to reduce U.S. home sales by around 8% this year. Conforming no point 30 year fixed mortgage rates average 4 1/4% with 15 year rates closer to 3 3/8ths.

And now for something completely different:Did you know that a book borrowed by George Washington in 1789 was marked as overdue for 221 years? It was returned in 2010 and the $300,000 in late fees were waived.

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: home sales, Reverse Mortgage, Aramco Report, home purchase, George Washington, bond market, China, 30 year fixed rates, Library, Chicago Fed's National Activity, economic data, refinance

ARAMCO Report -Friday September 19, 2014

Posted by Mehran Aram on Fri, Sep 19, 2014 @ 17:09 PM

According to 2nd quarter data from the Federal Reserve, growth in household owners’ equity rose by a more modest 1.7%, but up $4.7 trillion from the trough during the housing crisis equating to roughly $53,000 per property. At this pace it could take until early 2018 to fully recover all the equity. Meanwhile following a drop in bond yields on Friday, conforming no point 30 year fixed mortgage rates still average 4 1/4% with 15 year rates closer to 3 3/8ths.

And now for something completely different: In 1912, an orphanage in Paris held a raffle to raise money for a hospital. Hard to believe, but the raffle prizes were live babies!

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, and now for something completely different, home purchase, bonds, 30 year fixed rates, Bond yields, equity, Federal Reserve, Paris, refinance, Mortgage rates