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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

Buyers spending over 3 months to find next home

Posted by Mehran Aram on Sun, Feb 17, 2019 @ 08:02 AM

A shortage of homes for sale on the market is taking its toll on house hunters. A survey conducted by the National Association of Home Builders showed that 58 percent of buyers actively searching for a home to buy in the fourth quarter of 2018 had been looking for at least three months.

When respondents to the survey were asked what the primary reason for the delay in selecting home was, they cited a lack of homes for sale in their price range (49 percent) followed by not finding a home with their desired features (44 percent) and not finding a home in the right neighborhood (43 percent).

Despite the hurdles to finding the perfect home for the right price, just 16 percent of those surveyed say could give up a new home purchase altogether if these conditions persist.

Meanwhile, 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: Home Builders, NAHB, Mortgage rates, Housing Inventory, home buyers, Survey

ARAMCO Report - Wednesday April 15, 2015

Posted by The Aramco Group on Wed, Apr 15, 2015 @ 16:04 PM

Homebuilder Confidence Up, Mortgage Applications Down

Homebuilders nationwide have more confidence in the sellers’ market for single-family homes in April 2015 than they did in March. According to the results from the Home Builders Index (HBI)—which is released every month by the National Association of Home Builders (NAHB) and Wells Fargo—the national index went up 4 points in April to 56 points from 52 last month. That is much higher than the tie for the survey’s record low of 9 points in December 2008, recorded during the recession. Homebuilders with on-the-ground knowledge have been responding to the survey since 1985, and they give a score (0-100) based on current home sales, expected sales in the next six months, and on current homebuyer traffic.

Even as builders have greater optimism about the housing market, the number of people applying for mortgages dropped 2.3 percent in the week ending on April 10th compared to one week earlier — due to rates for non-FHA 30-year mortgages inching higher.

Conforming no point 30-year fixed 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.

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Topics: 30 year fixed rates, National Association of Home Builders, Mortgage applications, Home Builders, Wells Fargo, Home Builders Index, HBI, NAHB, home selling, builders