ARAMCO Report - The Mother of ALL Mortgage Blogs!

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

San Diego home prices holding steady

Posted by Mehran Aram on Fri, May 31, 2019 @ 06:05 AM

Home prices in the San Diego metropolitan area held relatively steady in April on a year-over-year basis according to new figures released this week by CoreLogic. Although this is a rebound from last month when the Southern California region saw its first yearly drop in prices since 2012, San Diego home price gains remain the lowest in the nation.

"The slowdown in price growth and sales over the past year suggests that despite a healthy economy, the cost of homeownership has outpaced incomes for many,” said Andrew LePage, research analyst for CoreLogic.

Today, 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 County, home prices, San Diego, CoreLogic, homeownership, Mortgage rates, San Diego Home Prices

U.S. homeownership rate dips

Posted by Mehran Aram on Wed, May 1, 2019 @ 06:05 AM

Sluggish increases in the homeownership rate in the U.S. has been one of the long-lingering effects of the Great Recession and new data suggests that the road to recovery is still a long one. Information from the U.S. Census Bureau shows that the homeownership rate fell from 64.8 percent at the end of 2018 to 64.2 percent in the first quarter of 2019. This is the first quarterly decline in more than two years.

The share of Americans who own a home briefly dipped to its lowest rate since 1965 in 2016. The rate has been slowly climbing to its historic average of 65 percent ever since. These latest figures are a setback as a result of first-time buyers finding starter homes beyond affordable.

The homeownership rate in San Diego peaked in 2006 when 63 percent of San Diegans owned their home. As of late, that number is closer to 55 percent.

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, homeownership, Mortgage rates, Homeownership Rate, U.S. Census Bureau, Q1 2019

Experts: Housing discrimination rampant

Posted by Mehran Aram on Fri, Apr 5, 2019 @ 06:04 AM

The gap in the homeownership rate between black and white Americans has widened significantly over the last century. According to Zillow, the aforementioned gap was 27.6 percent in 1900. Today it is closer to 30 percent. This discrepancy, according to the National Fair Housing Alliance, is due inequality.

In a survey, 27 percent of Americans said they believe they’ve been treated differently in their search for housing because of their status in a protected group. This is more than one in four or approximately 68 million adults nationwide.

Discrimination can be experienced online as seen recently with charges lodged against Facebook but many also report feeling mistreated by landlords, appraisers and even their own real estate agent.

As for mortgage rates, 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: Zillow, homeownership, Mortgage rates, Housing Discrimination, National Fair Housing Alliance

Americans striving to become homeowners

Posted by Mehran Aram on Mon, Mar 11, 2019 @ 05:03 AM

Homeownership has always been the bedrock of the American dream, but rising prices is keeping many shut out of achieving this part of the dream. Financial services company Bankrate released a report last week which indicates that 79 percent of Americans believe owning a home is a “hallmark” achievement of the American dream. However, prices climbing beyond affordable levels is posing an increasingly greater challenge.

“Forty-one percent of Americans who don’t own a home say they cannot afford a down payment and closing costs, and one-third cite high home prices as a major obstacle,” said Bankrate’s report. “About 50 percent of respondents who don’t own a home say they can’t afford a home purchase because of their income.”

Home prices have risen at a far greater pace than wages for the last several years. Mortgage rates having fallen significantly over the past few months have helped counteract this. 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: homeownership

Homeownership for singles

Posted by Mehran Aram on Mon, Feb 25, 2019 @ 05:02 AM

ATTOM Data Solutions released last week new data that suggests that despite gains in closing the gap in gender pay discrepancies, single men are more likely to be homeowners than single women. The analysis shows that on average single men owned over 1 million properties with the average value just over $300,000, and single women owned just under 1 million properties with the average value just under $300,000.

“According to the US Census Bureau, women earn 80.5 cents for every dollar a man earns, which in turn gives them less purchasing power when it comes to buying a home,” said Jennifer von Phlmann, director of PR for ATTOM. “Therefore, it’s not surprising to see almost a $30,000 home value gap between single men and single women homeowners.”

The data showed that six of the top ten metro areas with the biggest gender gap are in California.

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: census bureau, homeownership, Mortgage rates

ARAMCO Report - Friday May 8, 2015

Posted by The Aramco Group on Fri, May 8, 2015 @ 15:05 PM

How renters can be left behind in San Diego

Home ownership rates in San Diego went down 1.17 percent between 2010 and 2013 according the National Association of Realtors. That gives San Diego the 5th lowest homeownership rate (52.77 percent) of the 100 most populous metro areas in the US.

Rising home prices in many metro areas have helped homeowners build housing wealth in recent years, but the continued decline in homeownership means the gains are going to fewer people. According to the same study this resulted in an increase in inequality of 4.56 percent in San Diego over three years. This was primarily caused by how a typical home in San Diego appreciated $95,241 between 2010 and 2013 according to the survey. Renters were unable to harvest any of that growth.

By contrast, hourly wages for the average worker, across all non-farm sectors, rose three cents in April 2015 to $24.87, but have been stuck in a tight range of 1.8 percent to 2.2 percent annual growth since 2011.

Those looking to buy their first home or grow their housing wealth will find mortgage rates near all-time lows. Conforming no point 30-year fixed mortgages averaging 3.875 percent while 15-year mortgages 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: San Diego, 30 year fixed rates, homeownership, Housing, Inequality, Housing Wealth

ARAMCO Report - Tuesday April 28, 2015

Posted by The Aramco Group on Tue, Apr 28, 2015 @ 15:04 PM

Home ownership rates down but prices up

The Commerce Department reported that the national home ownership rate hit the lowest it has been since 1993 in the first quarter of 2015. The percentage of housing units being occupied by its owner was at 63.7 percent, which is 1.1 percentage points lower than the first quarter of 2014 (64.8) and 0.3 percentage points down from the fourth quarter of last year (64.0) respectively. Goldman Sachs analysts released a report on April 15 that says, “demographics support homeownership, tight credit does not.”

The national S&P/Case-Shiller Home Price Index has seen 34 months of positive year-over-year gains even with home ownership rates going down. Countrywide prices are still 10 percent below the high set during the 2006 housing bubble, but increasing prices, in light of the decrease in the homeownership rate, means that a substantial percentage of the housing inventory that was sold during the last decade was purchased by investors who are now renting the properties.

Home buyers and homeowners refinancing will find that conforming no point 30-year first 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.

Ask Mehran Aram

Topics: home prices, Housing Market, S&P Case Shiller, 30 year fixed rates, homeownership, renting, homes

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