ARAMCO Report - The Mother of ALL Mortgage Blogs!

Fall comes early for the housing market

Posted by Mehran Aram on Sun, Sep 15, 2019 @ 07:09 AM

Realtor.com reported this week that home prices fell 1.8 percent in August, unordinary for a month that traditionally still sees summer homebuyers clamoring over real estate.

“What it tells us is, fall came earlier than expected,” said Senior Economist George Ratiu of Realtor.com. A lot of homes on the market are too expensive, and a lot of buyers are taking a break.”

This coincides with a new Realtor.com survey that shows both buyers are sellers are concerned that a recession is on the horizen. Fifty-six percent of prospective home shoppers say that is causing them to rethink their home purchase for now.

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: home prices, home purchase, real estate, homebuyers, Mortgage rates, Home Sellers, Home Shoppers

San Diego home prices counter national trend

Posted by Mehran Aram on Fri, Aug 30, 2019 @ 07:08 AM

While home price growth is slowing down across the U.S., San Diego continues to defy the odds. The rate of home price appreciation in the region grew for the fifth consecutive month in June. This data is according to the latest S&P CoreLogic Case-Shiller National Home Price Index.

San Diego home prices grew 0.7 percent, faster than the national average of 0.6 percent. Local home prices have increased 1.3 percent over the past year.

A cooling of the housing market is being experienced nationwide as high price tags for available homes were beyond the average homebuyers budget. While this is true in San Diego as well, demand to purchase a home in America’s Finest City continues to drive prices higher.

Today, 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: San Diego County, home prices, Housing Market, homebuyers, Mortgage rates, San Diego Housing Market, S&P CoreLogic Case Shiller, San Diego Home Prices, Americas Finest City, U.S. Housing Market, Home Price Index

Home prices beyond affordable

Posted by Mehran Aram on Mon, Jul 8, 2019 @ 09:07 AM

The gap between what homebuyers want to pay for a home and what a home costs appears to be growing. A study conducted by Realtor.com found that, nationally, half of today’s house-hunters are looking to purchase a property for under $288,000. But that’s a 9.1 percent gap or $27,000 less than the median national home price.

Experts boil the dilemma down to the basic economic principle of supply and demand. There simply aren’t enough homes on the market that the average American can afford to buy. Although inventory is growing, it’s doing as at the top of the market – home's priced above $750,000.

“Entry-level homes continue to be difficult to come by as the inventory composition shifts more and more toward higher prices homes,” said Danielle Hale, chief economist for Realtor.com. “This is causing smaller and more affordable homes to appreciate rapidly, resulting in a mismatch between what buyers are able to spend and what sellers expect to receive.”

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: home prices, home purchase, homebuyers, Mortgage rates, Realtor.com, Realtors, median home price, Affordability, home inventory

Americans purchasing fewer new homes

Posted by Mehran Aram on Thu, Jun 27, 2019 @ 05:06 AM

The rate at which homebuyers in the U.S. are purchasing new homes is currently at its lowest pace in over six months according to new data. Purchases of newly built single-family homes fell by 7.8 percent in May to a seasonally adjusted annual rate of 626,000, acording to the U.S. Department of Commerce. This is below economists’ expectations in a survey conducted by The Wall Street Journal who forecasted new home sales to be closer to 683,000.

As they sit on the market unsold, the supply of newly built homes on the market is increasing. New home inventory was approximately 6.4 months as of May, up from 5.6 months last year.

Sales of newly built homes have flatlined for most of the past year as builders failed to focus on entry level priced homes and instead flooded the market with larger, more expensive dwellings.

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: homebuyers, single family homes, new home sales, U.S. Department of Commerce, Mortgage rates

Down payment assistance programs growing in popularity

Posted by Mehran Aram on Fri, Jun 21, 2019 @ 05:06 AM

Affording the monthly mortgage payment is managable for many young would-be homebuyers but coming up with the cash for a down payment has proven to be quite challenging. As a result, the use of down payment assistance programs doubled between 2013 and 2016, according to a new study.

The Wall Street Journal reported this week that a Freddie Mac analysis of the National Survey of Mortgage Originations shows the share of buyers using a down payment assistance program rose from five percent to 10 percent over a four-year period.

The most common low down payment loan is available in the form of an FHA loan which has less stringent credit requirements and allows a home purchase with as little as 3.5 percent down.

Meanwhile, conventional 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: Down Payment, homebuyers, Freddie Mac, Mortgage rates, Wall Street Journal, National Survey of Mortgage Originators, Down Payment Assistance

April home prices stabilize

Posted by Mehran Aram on Tue, May 28, 2019 @ 06:05 AM

After falling during the month of March on an annual basis, home prices across the nation stablized in April, rising 2.8 percent. According to the latest data available from Redfin, U.S. home-sale prices reached a median of $307,000 last month. These newest figures show that although the beginning of the year may have seen a retreat in sale prices, demand rising in the spring is likely to reverse this trend.

“Homebuyers should take April’s home-price rebound as a cue that the cooldown may be coming to an end,” said Redfin Chief Economist Daryl Fairweather. “The good news is that even though home prices are rising again, mortgage rates remain below last year’s levels and are unlikely to tick back up in a meaningful way this year.”

Mortgage rates experienced a notable decline since last November and continue to remain low throughout 2019 with 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 prices, homebuyers, Redfin, Mortgage rates, median home price

Growing number of homebuyers making 6-figures

Posted by Mehran Aram on Sat, Feb 2, 2019 @ 14:02 PM

The income disparity between property owners and renters appears to be growing. According to a new report from Zillow Research, more than one-third of today’s homebuyers make more than $100,000 per year. Homeowners have historically had higher income levels and this latest data proves that this reality is not only continuing but the wealth inequality gap is widening.

Zillow reports that those that purchased a property in 2017 earned more than 62.7 percent of U.S. households overall, up from 59.7 percent in 2012. The simple reason behind this trend is that incomes are not keeping up with home prices. While home prices have soared 50 percent in the past seven years, incomes have crept up just 11.3 percent.

In San Diego, the average owner household income is $116,756 compared to a renting household’s income of $53,000.

Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 4.375 percent, 15-year rates are near 3.875 percent and the 5-year ARM is averaging 4.375 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: San Diego, homebuyers, Zillow, Mortgage rates, San Diego Housing Market

California housing affordability crunch eases slightly

Posted by Mehran Aram on Thu, Nov 29, 2018 @ 05:11 AM

Flat home prices and stable interest rates helped make housing more affordable in the Golden State, says the California Association of Realtors. The trade group reported this week that the percentage of home buyers who could afford to purchase a median-priced existing single-family home in California in the third-quarter climbed one percentage point to 27 percent in the second quarter of 2018.

Based on the current median home price of $588,530, buyers would need an annual income of $125,540 to qualify for most conventional loan products. Should home price appreciation continue to slow, and the strong economy continue to result in rising wages, the affordability factor should see more improvements.

Today, conforming no-point 30-year fixed mortgage rates are averaging 4.875 percent, 15-year rates are near 4.25 percent and the 5-year ARM is averaging 4.5 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, homebuyers, California Association of Realtors, Mortgage rates, home affordability, Conventional Loans

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 - Thursday March 12, 2015

Posted by The Aramco Group on Mon, Mar 16, 2015 @ 12:03 PM

A new study by the National Association of Realtors flies in the face of concerns that younger people are not buying homes. The study found that the Millennial generation represented the largest share of buyers in 2014, which is the second year in a row that that’s been true. This young generation comprised 32% of all last year’s homebuyers. Meanwhile, Fannie Mae’s most recent report found that a record high of 54% of consumers believe it is easy to get a mortgage today. Conforming no point 30-year fixed mortgage rates average 3.875 percent, and 15-year rates are closer to 3.125 percent. And now for something completely different: did you know that Russian leader Vladimir Putin is a 9th degree black belt in Taekwondo? That is higher than Chuck Norris, but Putin’s ranking is honorary. 

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, Millennials, 30 year fixed rates, homebuyers, Millennial