ARAMCO Report - The Mother of ALL Mortgage Blogs!

Underwater homes still exist

Posted by Mehran Aram on Tue, May 14, 2019 @ 14:05 PM

While home values have risen rather steadily for the last several years, there remains a notable number of American homeowners who are still underwater. According to ATTOM Data Solutions, more than five million homes were seriously underwater as of the first quarter of 2019. For a home to be considered seriously underwater, the balance of the mortgage is at least 25 percent more than what the home is worth.

San Diegans on the other hand are on the opposite end of the spectrum with one of the lowest underwater rates in the nation. Approximately 40 percent of property owners in San Diego are equity rich, meaning the value of the home is more than 50 percent of its mortgage. This is consistent with the rest of California where 43 percent of homeowners are equity rich.

Higher levels of equity combined with low mortgage rates have led to a surge in refinances as of late. 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: San Diego County, San Diego, homeowners, home values, Mortgage rates, Underwater, ATTOM Data Solutions, Q1 2019, Underwater Homes, Equity Rich

Green living impacting housing market

Posted by Mehran Aram on Sun, May 5, 2019 @ 07:05 AM

It used to be a jetted tub or a kitchen island that caught the eye of home buyers but a new analysis shows that having a place to plug in your electric car is a main selling point for some. Realtor.com conducted a study of home values in relation to their proximity to electric-vehicle charging stations and found that homes closer to such stations commanded higher prices.

The study found that the nations most expensive zip codes are also the most accommodating to electric vehicles by volume of charging stations.

“Our data shows there’s definitely a link between the prevalence of electric-vehicle charging stations and higher home prices,” said Danielle Hale, chief economist at Realtor.com. She notes however the difference between correlation and causation saying “wealthier homeowners are more likely to purchase expensive electric vehicles”.

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: Electric Car, home values, Mortgage rates, Realtor.com, Green Living, Eco Friendly, Charging Stations

Homeowners perception of home values off the mark

Posted by Mehran Aram on Thu, Apr 18, 2019 @ 06:04 AM

Homeowners’ view of their home value was not in alignment with appraisers during the month of March. According to the National Quicken Loans Home Price Perception Index, the gap between a homeowner’s perception of their home value and that of a professional appraiser widened significantly last month. The gap grew by 25 percent compared to February.

San Diego’s data painted a different picture, however. Residents within the County actually underestimate their home values by about 0.93 percent. This is a wider gap than the one seen in January when San Diego homeowners undershot their values by 0.86 percent.

The variance between the national average and San Diego suggests that home values in the region continue to climb at a rate greater than what homeowners anticipate.

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: San Diego County, San Diego, homeowners, home values, Mortgage rates, San Diego Housing Market, Appraisers, Home Appraisal, Quicken Loans

Rising home values helping fend off foreclosures

Posted by Mehran Aram on Fri, Mar 15, 2019 @ 05:03 AM

The volume of mortgage delinquencies nationwide continues to decline as increasing home values put homeowners on solid ground. According to CoreLogic’s Loan Performance Insights report for December, the number of mortgages more than 30 days past-due is at a 10-year low.

“With additional ‘skin in the game,’ rising equity reduces the chances of a foreclosure,” said Frank Nothaft, chief economist for CoreLogic. He added that rising equity is “helping to push the foreclosure rate down to its lowest level since 2000.”

Just 4.1 percent of outstanding mortgages nationwide were 30 days or more past due as of December 2018. This is down from 5.3 percent the prior year.

Meanwhile, 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: homeowners, CoreLogic, foreclosures, home values, Mortgage rates

The impact of rehab centers on home values

Posted by Mehran Aram on Sun, Feb 24, 2019 @ 05:02 AM

Residential substance abuse treatment centers may not have as big an impact on home values in a neighborhood as previously thought. This is according to a study by the National Bureau for Economist Research.

Some studies have previously found that because potential home buyers would choose not to live near a rehab center, that residential treatment centers could drag down home prices by as much as 4.6 percent. But this latest report shows that when adjusted for factors like value prior to the center’s introduction into a community and benefits to surrounding businesses, there is no measurable difference.

The stigma behind these centers has created a shortage of treatment facilities for drug users.

Meanwhile, 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: home values, Mortgage rates, Rehab Centers

ARAMCO Report - Tuesday May 5, 2015

Posted by The Aramco Group on Tue, May 5, 2015 @ 15:05 PM

Home Prices Should Go Up for Rest of 2015

 

The prices for detached single family homes in San Diego went up 6.03 percent between March 2014 and March 2015, according to the Greater San Diego Association of Realtors.

Statewide prices in California went up 7.2 percent, and national prices went up 5.6 percent over the same time period according to the California Association of Realtors and CoreLogic’s Home Price Index respectively.

Home prices in twenty-seven states and the District of Colombia are within 10 percent of historical peaks for prices in their territories, but California is not one of them. California’s median home price of $440,000 is still -18.2 percent of its peak of $538,000 registered in May 2006.

However the CEO of CoreLogic said, “All signs are pointing toward continued price appreciation [nationally] throughout 2015.”

Prices are being driven upwards due to limited housing inventories across the country during a time with low mortgage rates and improving consumer confidence.

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 averaging 3.875 percent while 15-year mortgages averaging 3.215 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: San Diego County, home prices, San Diego, California, CoreLogic, 30 year fixed rates, California Association of Realtors, Greater San Diego Association of Realtors, National Association of Realtors, home values, home selling, National

ARAMCO Report - Thursday March 2, 2015

Posted by The Aramco Group on Fri, Apr 3, 2015 @ 12:04 PM

A new analysis of housing data from 24/7 Wall Street revealed that a full, nationwide recovery of single-family home values might still be 2 ½ years away. Values are on the rise, but some markets—particularly those in Western states including California—have recovered more quickly. Looking at other current economic data, new orders for U.S. factory goods rose unexpectedly in February — good news for a sector that accounts for 12% of the U.S. economy but that is negatively affected whenever the dollar is gaining strength, as it is now. Also, last week, initial jobless claims fell close to their lowest levels in 15 years according to the Labor Department’s jobs report. Claims decreased by 20,000 to a seasonally adjusted 286,000 in the week ending on March 28th. Thursday’s jobs report also showed that the number of people continuing claims for unemployment assistance fell by 88,000 — meaning that the number people discontinuing assistance is exceeding the rate at which new people need help.

Conforming no point 30 year fixed rates average 3.75 percent while 15-year rates are closer to 3 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: financial recovery, durable goods, Housing Market, economic data, housing recovery, home values

ARAMCO Report - Friday March 27, 2015

Posted by The Aramco Group on Fri, Mar 27, 2015 @ 14:03 PM

Mortgage amounts are currently rising faster than home prices according to The Mortgage Bankers Association. The average purchase loan amount has risen over 30% since 2011 up to nearly $300,000 and is now at a higher level than before the housing market crash. One possible explanation for the gap between the rates of change for mortgage amounts and home prices, according to the same association, is that the market for larger homes has rebounded more quickly, swinging average mortgage amount upwards. The stock market’s bull run for the last six years may have helped those invested re-enter the market for more expensive homes while middle and low income households may still have moderate credit after the recession or may otherwise still be intimidated from applying for mortgages. Meanwhile, with the consumer-price index rising 0.2 percent in February, its first gain in four months, the Fed is likely to view this as positive economic news and continue its uptick in interest rates over the next year. Currently though, 30-year fixed rates average 3.625 percent while 15-year rates are closer to 3 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: Consumer Price Index, 30 year fixed rates, mortgage, homeownership, stock market, home values, stock prices, Mortgage Amounts

ARAMCO Report - Friday February 13, 2015

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

Mortgage rates rose by about an 1/8th of a %. Over the past week with conforming no point 30 year fixed rates averaging 3 7/8ths and 15 year rates closer to 3 1/8th. Easing worries over the global economy and rising stock prices led to the biggest 2 week sell off in U.S. government bonds in a year. Meanwhile according to the California Association of Realtors, buying a home in California became slightly more affordable in the last quarter of 2014 compared to the prior quarter. And now for something completely different… Did you know that on average, a man spends $130 on Valentine’s Day gifts and plans? That contributes to the $14.7 billion industry.

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: bonds, Valentine's Day, 30 year fixed rates, sell-off, California Association of Realtors, home values, homes, stock prices

ARAMCO Report - Tuesday September 16, 2014

Posted by Mehran Aram on Tue, Sep 16, 2014 @ 17:09 PM

According to the National Association of Realtors, nationwide the Housing Affordability index fell in July thanks to the continued rise in home values which are outpacing incomes. But price gains are slowing. Median household income rose only slightly in 2013 for the first time since the recession. 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 the world famous Hollywood sign was first erected in 1923? But at the time the sign read “Hollywoodland.”

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: Reverse Mortgage, 30 year fixed rates, Housing Affordability index, Hollywood Sign, price gains, National Association of Realtors, Hollywood, home values, household income