ARAMCO Report - The Mother of ALL Mortgage Blogs!

Homeowners staying put longer than ever

Posted by Mehran Aram on Fri, Jul 26, 2019 @ 09:07 AM

American homeowners are choosing to live in their homes longer than ever before. The average tenure surpassed eight years in Q2 of 2019 – a record high. This is nearly double the length of time homeowners held on to their property before the Great Recession when the average tenure was near 4.21 years. This latest data is from ATTOM Data Solutions.

High home prices are the main culprit behind the lengthening tenancy. Homeowners are hanging onto their properties longer, likely hoping that sooner or later prices will cool.

San Francisco had the longest tenure in the nation with homeowners residing in their homes an average of 10.26 years.

Today, conforming no-point 30-year fixed mortgage rates are averaging 4.00 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, homeowners, homeownership, Mortgage rates, ATTOM Data Solutions

Low mortgage rates saving homeowners millions

Posted by Mehran Aram on Wed, Jul 3, 2019 @ 16:07 PM

With mortgage rates near their lowest point in years, millions of homeowners could benefit from refinancing their current mortgage. According to real estate analytics firm Black Knight, 8.2 million borrowers could lower their monthly mortgage payments by at least 75 basis points. That’s about $266 per month in savings.

Since mortgage rates began their steady decline last quarter, the volume of refinances has increased significantly. Mortgage applications to refinance a home loan were up 92 percent last week on a year-over-year basis.

In addition to locking in lower rates, refinance also provide the opportunity for borrowers to tap into their home’s equity. With rising home values, Black Knight has reported that the average homeowner has $136,000 in tappable equity.

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 purchase, homeowners, home equity, Mortgage applications, refinance, Mortgage rates, Mortgage Payments, Refi, Low Mortgage Rates

Homeowners perception of home values in line with reality

Posted by Mehran Aram on Wed, Jun 19, 2019 @ 09:06 AM

Homeowners’ views of their home values inched slightly closer with appraisers during the month of May. 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 narrowed last month, following six months of widening.

According to the report, most major cities had an average appraisal value that was more than two percent off from homeowners’ expectations. Homes are currently appraising for 3.54 percent above last year’s levels.

San Diegans often understate their home values according to previous data, suggesting that home values in the region rise faster than property owners anticipate.

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: San Diego County, San Diego, homeowners, Mortgage rates, Appraisers, Quicken Loans, Home Price Perception

Kitchen remodels top homeowners wish list

Posted by Mehran Aram on Sat, Jun 15, 2019 @ 08:06 AM

With rising home values, homeowners are opting for cash-out refinances which allows for extra money to spruce up the home. And when selecting what type of renovation project to tackle, nothing ranks higher for homeowners than a kitchen remodel. Spending on kitchen transformations jumped a whopping 27 percent over the past year, reaching a median of $14,000 on upgrades. This is according to newly released data from Houzz & Home.

Americans spent over $150 billion on home renovations in 2018, not including work done by investors. This figure is expected to increase in the coming years as housing affordability struggles lead buyers to purchasing more-affordable fixer-uppers.

Upgrading kitchens give home values the biggest boost. The National Association of the Remodeling Industry states that such renovations garner an 85 percent return on investment.

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: homeowners, Mortgage rates, Housing Affordability, home remodel, home remodeling, Kitchen Remodel, fixer upper, Remodel

Homeowner equity levels continue to climb

Posted by Mehran Aram on Tue, Jun 11, 2019 @ 05:06 AM

Despite a recent slowdown in price appreciations, homeowners with a mortgage in the U.S. saw their equity levels shoot up by 5.6 percent on average over the past year. This equates to $6,400 per homeowner according to the Home Equity Report released last week by CoreLogic.

Nevada once again led the nation with the biggest increase in equity levels, climbing $21,000, followed by Idaho ($20,700) and Wyoming ($20,300). Californians saw an average increase of $4,116.

These increases have pulled more homeowners out of negative equity territory. The number of households who owe more on their mortgage than their current home’s value has dropped to just 4.1 percent of all mortgage properties.

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: homeowners, CoreLogic, negative equity levels, home equity, homeownership, Mortgage rates, Underwater Homes, Equity Rich, households

Nearly half of renters wish they were owners

Posted by Darius Aram on Mon, Jun 3, 2019 @ 05:06 AM

Despite the increased cost, repairs, taxes and insurance, 45 percent of renters regret renting instead of being able to buy a home. This is more than five times the share of homeowners (8 percent) who regret buying instead of renting. This information comes from a survey conducted by Zillow Research.

The top two regrets that renters have include not being able to build equity in a property and not having the ability to customize or improve their home. This was followed by feeling that that rental prices are simply too high.

87 percent of renters have regrets about their current home compared to 72 percent of people who own. San Diego ranked near the top, with 91 percent of renters reporting at least one regret.

Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 4.00 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, homeowners, home equity, Zillow, homeownership, Mortgage rates, Renters, San Diego Housing Market, Rental Prices

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

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

Homeowners associations: friend or foe?

Posted by Mehran Aram on Sat, Apr 13, 2019 @ 06:04 AM

You get what you pay for is the old adage and for many, paying a home owners association fee is worth every penny. For others, an HOA the experience may be different. These associations, in exchange for a monthly fee, help pay for the upkeep of common areas in a community, pools and gyms and security gates or guards. But being a member of the association isn’t an option for homeowners, it’s required.

There are over 333,000 home owners associations in the U.S. representing tens of millions of households. For those who have always dreamed of painting their house in purple polka-dots, the HOA is a roadblock.

Interestingly, HOA's are powerful organizations. In the event of a conflict with your neighbors or the HOA itself, be forewarned that the penalties for violating the rules can be steep.

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: homeowners, HOA Payments, Mortgage rates, homeowners association, Fees, HOA

Lower rates stimulate mortgage activity

Posted by Mehran Aram on Sat, Mar 16, 2019 @ 06:03 AM

Home owners and those looking to refinance their existing mortgage are taking advantage of decidedly lower mortgage rates as seen in last week’s increase in mortgage applications. According to the Mortgage Bankers Association’s seasonally adjusted index, total mortgage application volume rose 2.3 percent last week with a sizeable increase in applications to purchase a home.

“Purchase applications have now increased year over year for four weeks, which signals healthy demand entering the busy spring buying season,” said Joel Kan, associate vice president of economist and industry forecasting for the MBA.

The Purchase Index climbed four percent last week – this is 2 percent higher than it was during the same time last year.

Today, 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, mortgage, Mortgage applications, Mortgage Bankers Association, refinance, Mortgage rates, low rates