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Consumer confidence in housing market at record high

Posted by Mehran Aram on Tue, Aug 13, 2019 @ 06:08 AM

Low mortgage rates and unemployment figures in July helped boost consumer confidence to the highest levels ever record. According to Fannie Mae’s monthly index, “confidence about not losing job” and “mortgage rates will go down” rose significantly.

Although home buyers continue to battle against rising prices and low inventory, particularly for entry-level homes, mortgage rates dropping last month helped boost confidence that the future of the housing market would remain strong.

More consumers reported in July’s survey that now is a good time to buy a home and a growing number of respondents believe that home values will continue to rise over the next year.

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: Housing Market, Fannie Mae, Mortgage rates, consumer confidence, home buyers, U.S. Housing Market, home inventory

Homebuyers call ceasefire in bidding wars

Posted by Mehran Aram on Mon, Aug 12, 2019 @ 05:08 AM

The number of home buyers engaging in bidding wars with other buyers has dropped more than 45 percent over the last year. Only 11.2 percent of offers written by Redfin agents faced homebuyer competition, the lowest rate in eight years.

This is a radical change from the peak reached in March 2018 when 59 percent of home purchases ended in a bidding war.

San Diego appears to be fighting against the national trend. The local housing market still faces fierce competition with 21.3 percent of Redfin sales seeing a bidding war. This makes San Diego the second most competitive housing market in the U.S. The current volume of bidding wars is up from 19.4 percent in June but down significantly from 61.5 percent in July 2018.

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: San Diego, Housing Market, Redfin, Mortgage rates, home purchases, bidding war, San Diego Housing

Home prices continue slow climb

Posted by Mehran Aram on Sun, Aug 11, 2019 @ 08:08 AM

The pace of home sales in the U.S. has remained largely flat for the better part of 2019 but that hasn’t kept prices from continuing their upward journey. While the rate at which prices are climbing has slowed, single-family home prices nationwide remain at an all-time high. According to CoreLogic’s Home Price Index and HPI Forecast for June 2019, home prices in the U.S. are 3.4 percent higher than they were during the same month last year.

Prices also increased on a monthly basis, rising by 0.4 percent from May to June. CoreLogic predicts that the cost of a home will continue to rise as well. Experts anticipate another 5.2 percent increase over the next year.

Increases in home prices in the lower-end of the market are especially challenging for first-time buyers, however, mortgage rate near historic lows could help make monthly mortgage payments more affordable.

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: home sales, home prices, CoreLogic, single family homes, Mortgage rates, June Home Prices

Mortgage delinquencies spike

Posted by Mehran Aram on Sat, Aug 10, 2019 @ 09:08 AM

Following a record low in May, mortgage delinquencies nationwide shot up 11 percent in June to 3.73 percent. This is the biggest one-month spike in nearly 10 years. However, according to a statement from Black Knight, the abrupt increase may be a fluke related to the calendar.

“The month ended on a Sunday, which means servicing operations are closed on the last two days of the month and cannot process last-minute payments,” Black Knight said. The statement also noted that month’s ending in a Sunday have contributed to nine of the 10 largest single-month delinquency gains in the last seven years.

The June increase follows a record low the prior months when late payments fell to just 3.36 percent of all mortgaged homes. This has contributed to a historic low in foreclosures as well.

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: Housing Market, foreclosures, Black Knight, Mortgage rates, Mortgage Delinquencies, Late Payments

Mortgage delinquencies spike

Posted by Mehran Aram on Fri, Aug 9, 2019 @ 16:08 PM

Following a record low in May, mortgage delinquencies nationwide shot up 11 percent in June to 3.73 percent. This is the biggest one-month spike in nearly 10 years. However, according to a statement from Black Knight, the abrupt increase may be a fluke related to the calendar.

“The month ended on a Sunday, which means servicing operations are closed on the last two days of the month and cannot process last-minute payments,” Black Knight said. The statement also noted that month’s ending in a Sunday have contributed to nine of the 10 largest single-month delinquency gains in the last seven years.

The June increase follows a record low the prior months when late payments fell to just 3.36 percent of all mortgaged homes. This has contributed to a historic low in foreclosures as well.

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: Black Knight, Mortgage rates, U.S. Housing Market, Mortgage Delinquencies

Home affordability improving thanks to low rates

Posted by Mehran Aram on Wed, Aug 7, 2019 @ 06:08 AM

Recent declines in mortgage rates has created millions more potential home buyers. In a new edition of Black Knight’s Mortgage Monitor report, the drop in rates has made home affordability the best it has been in 18 months.

Although home prices continue to increase, less expensive borrowing costs can be an offset. Even small drops in mortgage rates can make a monthly mortgage payment more affordable for home buyers. Black Knight reports that while the average home price has increased by $12,000 since interest rates peaked last November, monthly payments have declined $108 as rates began to retreat.

Lower mortgage rates could spur an increase in home sales as house hunters have more buying power.

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: home prices, Interest Rates, Black Knight, Mortgage rates, home affordability, home buyers, Affordability, Borrowing Costs, Monthly Mortgage Payments

Freddie Mac predicts bright future for housing

Posted by Mehran Aram on Tue, Aug 6, 2019 @ 07:08 AM

Mortgage giant Freddie Mac shared last week its monthly forecast on the housing market. In a statement, the government-run corporation, said that low mortgage rates and further gains in the job market will continue to “help sustain the housing market for at least the next year and a half.”

Mortgage rates are forecast to decline even further than they already have, landing at just around 4 percent by 2020 for 30-year fixed-rate home loans. Although savings on borrowing costs will be offset by further increases expected in home prices. Price growth is currently forecast to climb 3.4 percent this year and another 2.6 percent next year.

Freddie Mac purchases home loans from banks and repackages them into mortgage-backed securities that it can then sell to other financial institutions.

Meanwhile, 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: Interest Rates, Housing Market, Freddie Mac, Mortgage rates

Federal Reserve cuts rates, possibly impacting mortgages

Posted by Mehran Aram on Mon, Aug 5, 2019 @ 06:08 AM

The Federal Reserve Announced last week that it was lowering its benchmark federal funds rate by a quarter of a percentage points to 2.25 percent. This is the first rate decrease since 2008. Although it was widely expected, the move by the central bank will have widespread implications.

While changes in the federal funds rate is not directly linked to long-term rates like mortgages, it is often affected by such changes. Fixed mortgage rates have fallen over one percentage point since last November as economic growth began to slow. Because of the downward trend already happening with mortgage rates, last week’s rate cut will likely have little impact on fixed rate home loans.

Variable-rate mortgages, on the other hand, as well as home equity lines are based on short-term rates and will be positively impacted by the new lower rate.

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: Federal Reserve, Mortgage rates, Federal Funds Rate, Central Bank

Homeownership rate dips in Q2

Posted by Mehran Aram on Wed, Jul 31, 2019 @ 06:07 AM

The U.S. homeownership rate, which has slowly made a comeback after reaching a low-point in 2016, slipped slightly in Q2 2019. According to the Census Bureau, the rate fell on both a monthly and yearly basis to 64.1 percent. The homeownership rate in the costlier West was even lower as of the end of June at 59.3 percent.

The number of households in the U.S. that owned their home fell steadily for the 10 years following the Great Recession but began to reverse course in 2016 after hitting a low of 62.9 percent.

Homeownership is the highest among those 65 years of age or older at 78.0 percent and lowest for Millennials (those under 35) at 36.4 percent.

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: homeownership, Mortgage rates, Homeownership Rate, U.S. Census Bureau

Average credit score of home buyers rises

Posted by Mehran Aram on Tue, Jul 30, 2019 @ 05:07 AM

Securing the best terms on a home loan can help buyers save money and with credit scores rising across the U.S., doing this is becoming more common. According to a new report, the average credit score of Americans applying for a mortgage in June rose to a three-year high. The data comes from mortage software company Ellie Mae.

Credit scores for home buyers averaged 731 last month – the highest since September 2016. The higher FICO scores are a product of a strong economy and plentiful jobs helping borrowers make on-time payments on their bills. The current unemployment rate nationwide is 3.7 percent, near the lowest level in 50 years.

Top tier credit scores are helpful to buyers as banks continue to impose strict lending standards.

Meanwhile, 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: Mortgage rates, home buyers, Credit Score, Ellie Mae