ARAMCO Report - The Mother of ALL Mortgage Blogs!

Home building climbs to highest level in 11 years

Posted by Mehran Aram on Sun, Sep 22, 2019 @ 08:09 AM

The Commerce Department announced last week that home building in the U.S. increased in August to its highest level since June 2007. Home construction has lagged behind demand for new homes for several years resulting in skyrocketing home prices. This latest data is a positive mark on the overall housing market which has been shrouded with uncertainty as more economists speculate a recession may be on the horizon.

Housing starts rose 12.3 percent last month to a seasonally adjusted annual rate of 1.364 million units. This far surpasses the 4.1 percent increase economists surveyed by The Wall Street Journal had predicted for August.

Low mortgage rates are likely to sustain the high demand levels throughout the winter months and well into next 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: Housing Market, new homes, Housing Starts, Mortgage rates, Home Building, Home Construction

New home sales increase in July

Posted by Mehran Aram on Tue, Sep 10, 2019 @ 05:09 AM

Sales for newly built homes outpaced sales for existing homes in Southern California in July according to a new report. New home sales were 13 percent higher during the month than they were at the same time last year according to CoreLogic. In comparison, existing home sales increased just three percent during the same period. In total, 1,719 newly built homes were purchased across Southern California in July.

The demand for new homes doesn’t appear to have dwindled since last year despite prices rising. The price for a new home in San Diego County rose 21 percent over overall home prices in the region since last summer.

The median price tag for a newly constructed home in San Diego as of July: $701,250.

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: San Diego County, Housing Market, Southern California, existing home sales, new homes, new home sales, Mortgage rates, San Diego Housing Market, Existing Homes, San Diego Median Home Price

California housing shortage worse than previously thought

Posted by Mehran Aram on Thu, Aug 29, 2019 @ 06:08 AM

After several months of prodding by Gov. Gavin Newsom, the Southern California Association of Governments, representing half of the state’s population, agreed in June to zone for the development of 430,000 new homes through 2029. Apparently, that figure is short of what is actually needed, drastically so.

According to a letter released by state housing officials last week, the need over the next decade is closer to 1.3 million new homes. Even this new estimate is still far off from the 3.5 million dwellings Newsom is pushing for.

The call for more housing comes as California is battling an unprecedented housing shortage.

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: new homes, new housing, Mortgage rates, California Housing Market, Affordable Housing, housing shortage, Gavin Newsom, California Housing Shortage

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

Where California’s new homes are being built

Posted by Mehran Aram on Tue, May 21, 2019 @ 05:05 AM

There is an ongoing housing shortage in California that experts by-and-large have collectively labeled a crisis. Builders appear to be working to address this shortage but continue to fall short of meeting demand.

Southern California appears to be bringing new homes online at a much faster rate than the north. Los Angeles had 3,0002 single-family properties and a whopping 12,828 multi-family dwellings completed last year. Other SoCal cities with a high volume of new single-family homes include Irvine (1,945), San Diego (940) and Menifee (883). In Northern California, the state capital led the pack. Sacramento had 1,654 new single-family homes built in 2018.

The California Department of Finance reports that the total number of new residences built last year was about 97,000. To compare in 2006 there 200,000.

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: new homes, Mortgage rates, California Housing Market, San Diego Housing Market, housing shortage, Southern California Housing Market, California Department of Finance, California Housing Shortage

Dirt lots being sold before homes are built

Posted by Mehran Aram on Thu, Mar 28, 2019 @ 06:03 AM

The volume of homes being sold before they have even been built is increasing exponentially according to a new report. Data from the Commerce Department showed that more than 34 percent of newly built homes sold in 2018 was either before or while the property was under construction.

This comes as welcome news to homebuilders as it indicates a continued strong demand for new homes. Builders were challenged last year with flat sales and rising material costs causing big builder stocks to lose 20 percent on average.

Demand for new housing is expected to move higher as mortgage rates remain low. 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: home sales, Housing Market, new homes, U.S. Department of Commerce, Mortgage rates

December new construction starts retreat

Posted by Mehran Aram on Thu, Jan 31, 2019 @ 05:01 AM

New construction starts in the U.S. declined last month due to a slowdown in all three main construction sectors – commercial, residential and nonbuilding projects such as highways and power utilities. According to Dodge Data & Analytics, total new construction fell 10 percent. This follows a seven percent slide the month before.

Residential building in December was down eight percent from the previous month, dragged lower by a 15 percent drop in multifamily housing construction projects. Multifamily building construction ended 2018 up eight percent on an annual basis, rebounding from the eight percent decline that was reported for 2017.

Rising material costs and labor shortages are the primary culprits behind the declines. Stagnation in new home construction is likely to hinder momentum gained by recent increases in housing supply. Meanwhile, conventional conforming no-point 30-year fixed mortgage rates are averaging 4.375 percent, 15-year rates are near 3.875 percent and the 5-year ARM is averaging 4.375 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: residential construction, new homes, Construction Starts

ARAMCO Report - Thursday February 12, 2015

Posted by The Aramco Group on Tue, Feb 24, 2015 @ 11:02 AM

According to the January Mortgage Bankers Association’s Builder Application survey, mortgage applications for new home purchases jumped by 29% compared to the previous month. Lower mortgage rates certainly provided a great incentive. Meanwhile mortgage backed securities rallied on Thursday thanks to a larger than expected drop in January, retail sales, and a sharp rise in weekly jobless claims. Conforming no point 30 year fixed mortgage rates still average 3 3/4s with 15 year rates closer to 3 1/8th. And now for something completely different… Did you know that Neil Armstrong carried a piece of muslin fabric and a piece of wood with him to the moon? They came from the left propeller of the Wright brother’s airplane, called the Wright flyer.

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: purchasing, Wright Brothers, Neil Armstrong, 30 year fixed rates, new homes, Mortgage Bankers Association

ARAMCO Report - Tuesday August 19, 2014

Posted by Mehran Aram on Tue, Aug 19, 2014 @ 17:08 PM

According to the U.S. Department of Commerce, construction on new homes jumped by 15.7% in July and reached its highest level in 8 months, further evidence of a recovering housing market. The jump in housing starts exceeded economists’ expectations on Wall Street. Meanwhile the pace of inflation at the consumer level cooled following a sharp increase earlier in the year. Conforming no point 30 year fixed mortgage rates average 4 1/8th with 15 year rates closer to 3 1/4%.

And now for something completely different: Did you know that there is only one type of rock that can float in water? It’s the volcanic rock, also known as pumice!

For more information on a home purchase, refinance, or a reverse mortgage, visit our website at www.ARAMCO.Biz or call me at (877) 700-0942.

This is Mehran Aram with today's ARAMCO Report.

Ask Mehran Aram

Topics: Aramco Financial, Aramco Report, and now for something completely different, home purchase, home ownership, Wall street, Floating Rock, Construction, new homes, Pumice, refinance, U.S. Department of Commerce