ARAMCO Report - The Mother of ALL Mortgage Blogs!

Low mortgage rates saving homeowners millions

Posted by Mehran Aram on Wed, Jul 3, 2019 @ 16:07 PM

With mortgage rates near their lowest point in years, millions of homeowners could benefit from refinancing their current mortgage. According to real estate analytics firm Black Knight, 8.2 million borrowers could lower their monthly mortgage payments by at least 75 basis points. That’s about $266 per month in savings.

Since mortgage rates began their steady decline last quarter, the volume of refinances has increased significantly. Mortgage applications to refinance a home loan were up 92 percent last week on a year-over-year basis.

In addition to locking in lower rates, refinance also provide the opportunity for borrowers to tap into their home’s equity. With rising home values, Black Knight has reported that the average homeowner has $136,000 in tappable equity.

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 purchase, homeowners, home equity, Mortgage applications, refinance, Mortgage rates, Mortgage Payments, Refi, Low Mortgage Rates

Mortgage applications jump following drop in rates

Posted by Mehran Aram on Mon, Jun 17, 2019 @ 08:06 AM

Applications for mortgages shot up last week as mortgage rates declined. The dip in borrowing cost made millions of homeowners eligible to refinance their existing mortgage and lock in a lower rate. Refinances were the main driver behind the 26.8 percent spike in mortgage loan application volume during the week ended June 7.

The Mortgage Bankers Association reports that although home purchases also increased, it was applications to refinance soaring 47 percent over the week that was behind the overall increase. Refinance applications accounted for 49.8 percent of total application volume – the highest level since January 2018.

This latest data shows that even the slightest drops in mortgage rates can motivate borrowers to act quickly on locking in the savings.

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: purchase, Mortgage applications, refinance, Mortgage rates, low rates, Purchase Applications, Homeowner, Low Interest Rates, Refi, Refinance Applications

Lower rates stimulate mortgage activity

Posted by Mehran Aram on Sat, Mar 16, 2019 @ 06:03 AM

Home owners and those looking to refinance their existing mortgage are taking advantage of decidedly lower mortgage rates as seen in last week’s increase in mortgage applications. According to the Mortgage Bankers Association’s seasonally adjusted index, total mortgage application volume rose 2.3 percent last week with a sizeable increase in applications to purchase a home.

“Purchase applications have now increased year over year for four weeks, which signals healthy demand entering the busy spring buying season,” said Joel Kan, associate vice president of economist and industry forecasting for the MBA.

The Purchase Index climbed four percent last week – this is 2 percent higher than it was during the same time last year.

Today, 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: homeowners, mortgage, Mortgage applications, Mortgage Bankers Association, refinance, Mortgage rates, low rates

Mortgage applications rebound but deeper look shows trouble

Posted by The Aramco Group on Fri, Oct 26, 2018 @ 04:10 AM

Columbus Day seems to have skewed the volume of mortgage applications over the past two weeks. While the Mortgage Bankers Association is reporting an increase in weekly application volume for the period ended October 19, a closer examination of the seasonally adjusted figures paints a different picture.

Total mortgage application volume climbed 4.9 percent last week from the previous week when seasonally adjusted. This follows a large drop the week before when the number of applications reported by the MBA were not adjusted to account for Columbus Day. When taking the holiday into account, mortgage activity is lower than it was two weeks prior and 16 percent lower than the same period last year.

Refinancing saw a 10 percent weekly increase but remain 32 percent less than last year Purchases climbed two percent over the week but remain unchanged from 2017. Mortgage rates are nearly a full percentage point higher than they were this time last year, largely the cause for the decreases in mortgage application volume. Conforming no-point 30-year fixed mortgage rates are averaging 4.75 percent, 15-year rates are near 4.25 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: purchase, Mortgage applications, refinance, Mortgage rates

Home equity has come ‘roaring back’

Posted by The Aramco Group on Mon, Oct 22, 2018 @ 14:10 PM

American homeowners are sitting a record amount of equity according to new research, putting many in a prime position to tap into it. Home equity – the amount a property is worth above the amount owed on it – is estimated to be a cumulative $14.4 trillion. This is an all-time high according to a report by TransUnion and more than double the low of $9 trillion during the height of the recession.

“Consumers have been building up that equity over the last seven years or so,” according to Joe Mellman, senior vice president at TransUnion. “It really has come roaring back.”

With interest rates on credit cards near 20 percent or even higher in some cases, establishing a home equity line of credit or a cash out refinance can be a less expensive way for borrower to get a hold of much needed cash.

Today, conforming no-point 30-year fixed mortgage rates are averaging 4.75 percent, 15-year rates are near 4.25 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 equity, refinance, Mortgage rates, home owners, HELOC

Mortgage activity dragged down by higher rates

Posted by The Aramco Group on Fri, Oct 19, 2018 @ 14:10 PM

Last week mortgage applications fell by the largest seasonally adjusted percentage in a year, the latest sign that recent increases in borrowing costs are causing pause in the housing market. The Mortgage Bankers Association is reporting that during the week ended October 12, total mortgage applications fell 7.1 percent.

Refinances experienced a significant drop during the week, 9 percent compared to the week prior. This represents the largest decline since November 2017. Mortgage rate increases have the sharpest impact on homeowners looking to refinance their existing home loans.

Although homebuyer demand remains strong, affordability struggles are slowing the rate of purchases. Applications to purchase a home fell 6 percent during the week but remain 2.5 percent higher than the same week last year.

Today, conforming no-point 30-year fixed mortgage rates are averaging 4.75 percent, 15-year rates are near 4.25 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: homeowners, Housing Market, Mortgage applications, refinance, Mortgage rates, Purchase Applications

ARAMCO Report - Wednesday May 6, 2015

Posted by The Aramco Group on Thu, May 7, 2015 @ 09:05 AM

Share of People applying Gov-Backed mortgages increases

 

The share of total mortgage applications nationally that were used to apply for government-backed purchase loans— such as FHA, VA and USDA backed mortgages—increased 3.5 percent in the week that ended May 1st, 2015 to 26.7 percent of total applications from 25.6 percent the week prior according to the Mortgage Bankers Association (MBA).

Each one of these mortgages is insured by a particular agency from the federal government, and that allows the lender to usually offer better terms. For example, the average interest rate for FHA-backed 30-year fixed rate mortgages was 3.70 in the week ending May 1st, 2015 (with a 20 percent down payment) compared to an average of 3.93 percent for non-FHA mortgages for the same terms.

Veterans can use their VA loan to purchase a home with no down payment or refinance their existing loan up to 100 percent of their home’s value. With FHA loans, a first-time homebuyer can buy a home with a 3.5 percent down payment while seniors over the age of 62 can use a reverse mortgage to eliminate their monthly mortgage payments or purchase a new home with no monthly mortgage payments. 

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: Reverse Mortgage, home buying, 30 year fixed rates, VA Loans, FHA, Mortgage applications, Refinancing, refinance, Home Loan

ARAMCO Report - Monday February 2, 2015

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

The benchmark 10 year note yield fell to 1.693% helping keep mortgage rates at their lowest level since mid-2013, fueling another refinance boom. Boosting demand in the bond market were two measures of manufacturing sentiment in January which matched their worst performance in a year. This thanks to weakness in the European and the Chinese economy as well as the stronger U.S. dollar. Conforming no point 30 year fixed mortgage rates average 3 5/8ths with 15 year rates closer to 2 7/8ths.

And now for something completely different… Did you know that prior to Sunday’s Super Bowl XLIX, the favorite had won 69% of the time? The New England Patriots were also a 1 point favorite in Sunday’s game.

This is Mehran Aram with today's ARAMCO Report. 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.

Ask Mehran Aram

Topics: The Aramco Group, China, 30 year fixed rates, Europe, Super Bowl, 10 Year Note, refinance

ARAMCO Report -Wednesday September 24, 2014

Posted by Mehran Aram on Wed, Sep 24, 2014 @ 17:09 PM

According to the U.S. Department of Commerce sales of new single family homes in August rose 18%, hitting the fastest pace since May of 2008. And the largest one month percentage rise since January of 1992. But existing home sales fell in August, the first drop in 5 months. And while household formation slowed significantly last year, 53% of American’s still expect home prices to rise over the next 12 months. Conforming no point 30 year fixed mortgage rates average 4 1/4% with 15 year rates closer to 3 3/8ths.

And now for something completely different: Did you know that Cristiano Ronaldo’s father was such a big Ronald Reagan fan that he gave his son the second given name of "Ronaldo" after the 80s president?

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: home sales, Reverse Mortgage, Loans, Soccer, Ronald Reagan, 30 year fixed rates, Cristiano Ronaldo, single family homes, refinance, U.S. Department of Commerce

ARAMCO Report -Monday September 22, 2014

Posted by Mehran Aram on Mon, Sep 22, 2014 @ 17:09 PM

Weaker than expected economic data and concerns about China’s economic outlook was supportive of the bond market. Existing home sales fell 1.8% in August and year over year were down 5.3%. And the Chicago Fed’s National Activity index also fell in August. Meanwhile higher level of student debt is expected to reduce U.S. home sales by around 8% this year. Conforming no point 30 year fixed mortgage rates average 4 1/4% with 15 year rates closer to 3 3/8ths.

And now for something completely different:Did you know that a book borrowed by George Washington in 1789 was marked as overdue for 221 years? It was returned in 2010 and the $300,000 in late fees were waived.

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: home sales, Reverse Mortgage, Aramco Report, home purchase, George Washington, bond market, China, 30 year fixed rates, Library, Chicago Fed's National Activity, economic data, refinance