ARAMCO Report - The Mother of ALL Mortgage Blogs!

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