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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

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

Lawmakers try to provide relief from high rent prices

Posted by Mehran Aram on Mon, Jun 10, 2019 @ 05:06 AM

After a California ballot measure to expand rent control failed last November, lawmakers are looking into other options to curb the seemingly endless increase in the state’s rent prices. Legislators are weighing bills that would take dramatic steps to control prices like prohibiting landlords from raising the rent more than 5 percent per year after inflation. A new rent control proposition is also expected to be on the ballot in 2020, according to an article on Realtor.com.

On a local level, the city of Long Beach, where rent costs have shot up by more than 25 percent since 2014, is forcing some rental unit owners to pay for a tenants moving expenses if they raised the rent more than 10 percent in the previous year.

In San Diego, where rent prices are among the highest in the nation, someone making $40,000 per year may still need a roommate to avoid monthly living expenses eating away more than half of each paycheck.

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: Mortgage rates, Rent, California Housing Market, Rental Prices, High Rent, California Rent Prices

San Diego housing trend spells good news for entry-level buyers

Posted by Mehran Aram on Sun, Jun 9, 2019 @ 07:06 AM

A recent study from Realestate.com shows that the rate of home price appreciation in San Diego for dwellings in the lower third of prices is slowing. Homes in the bottom-third of the market appreciated at a rate of 2.2 percent annually as of April, that’s down significantly from the 10.4 percent price jump seen between 2017 and 2018. The slowdown in price growth for these entry level homes may make it easier for first-time buyers to get in the market.

Of course, entry-level homes in San Diego still come with a nearly half-million dollar price tag. Although the San Diego Housing Commission offers down payment assistance and that can potentially be coupled with programs like an FHA loan which allows buyers to purchase a home with as little as 3.5 percent down.

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, real estate, Mortgage rates, San Diego Housing Market, San Diego Housing Commission, Housing Trends, San Diego Housing

Housing market shifting in favor of buyers

Posted by Mehran Aram on Sat, Jun 8, 2019 @ 08:06 AM

After years of record low inventory levels, an influx of homes on the market is helping solidify speculation made by experts that 2019 may be the year the housing market finally shifts in favor of buyers. As mortgage rates decline, homeowners are seeing an opportunity to move and listing their home for sale.

“The U.S. housing market has largely favored sellers over the last several years as a result of the record-breaking low inventory and red-hot demand that led to intense competition and fast-rising home prices,” said Realtor.com’s Chief Economist Danielle Hale. “Slowing sales and growing inventories have caused supply to increase in many markets across the country.”

With more homes expected to be listed for sale this summer, the prevalence of bidding wars that have been seen in previous years is likely to be lessened.

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 sales, Housing Market, National Association of Realtors, Mortgage rates, Realtor.com, U.S. Housing Market, National Housing Market

A uniquely California problem: too many mansions

Posted by Mehran Aram on Fri, Jun 7, 2019 @ 16:06 PM

Southern California is known for its streets lined with palm trees, beaches and glitz and glam. This includes homes that are so large, they can only be described as mega-mansions. However, a recent report from The Wall Street Journal shows that there is a growing inventory of these palatial homes and not enough buyers.

In Los Angeles alone, there are currently 50 ultra high-end homes under construction and are expected to cost anywhere from $35.5 million to $500 million. And in typical Hollywood fashion, real estate agents are ditching open houses and instead inviting potential buyers to lavish themed parties to check out these grand estates.

The influx in mega-mansions began several years ago where there was increasing interest from foreign buyers for such homes, but builders are seeing that domestic demand is far less, leaving them with a surplus of superfluous 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: California, Mortgage rates, Housing Inventory, California Housing Market, Southern California Housing Market, Mega Mansions, SoCal

Construction spending flat in April

Posted by Mehran Aram on Wed, Jun 5, 2019 @ 05:06 AM

After a surge earlier in the year, construction spending in the U.S. was relatively flat from March to April. According to data released by the U.S. Census Bureau, total construction spending in April was $1.3 trillion, roughly the same as March and 1.2 percent below the same month last year.

Increases in spending over the last several months have been driven largely by spikes in residential construction. Homebuilders are optimistic about the future of the housing market but are struggling to meet buyer demand for single-family homes.

Low mortgage rates and the summer home buying season is expected to keep demand for homes elevated through the coming months at least.

Today, conforming no-point 30-year fixed mortgage rates are averaging 3.875 percent, 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: Mortgage rates, Homebuilders, Construction Spending, U.S. Census Bureau

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

Builder confidence gets a boost

Posted by Mehran Aram on Sun, Jun 2, 2019 @ 09:06 AM

Sales of newly built homes are on the rise, giving homebuilders a boost in confidence as the rest of the housing market seems to be in a slump. Builder confidence in newly built, single-family homes rose three points in May to a reading of 66. Anything above 50 is generally considered positive however this is lower than the reading of 70 in May 2018. This latest information comes from the National Association of Home Builders/Wells Fargo Housing Market Index.

Demand for new homes continues to remain high. The index’s component measuring sales expectations for the next six months rose to a reading of 72 last month.

“This lower-interest rate environment, along with ongoing job growth and rising wages, is contributing to a gradual improvement in the marketplace,” said NAHB Chief Economist Robert Dietz.

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: Housing Market, National Association of Home Builders, new homes, single family homes, NAHB, Mortgage rates, Home Builder Confidence

Pending home sales retreat for 16th consecutive month

Posted by Mehran Aram on Sat, Jun 1, 2019 @ 08:06 AM

Even with falling mortgage rates in recent weeks, pending home sales, which are a measure of signed contracts to purchase existing homes, dropped 1.5 percent in April, compared to March. On a year-over-year basis contract signings fell by two percent – the sixteenth consecutive month of annual declines.

The decline in pending home sales, according to data from the National Association of Realtors, is not indictive of the health of the overall housing market and points to other, more positive trends.

“Though the latest monthly figure shows a mild decline in contract signings, mortgage applications and consumer confidence have been steadily rising,” said NAR’s Chief Economist Lawrence Yun. “It’s inevitable for sales to turn higher in a few months.”

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: Housing Market, National Association of Realtors, Mortgage applications, NAR, Mortgage rates, Pending Home Sales, Existing Homes, Signed Contracts