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Lawmakers try to provide relief from high rent prices

Posted by Mehran Aram on Mon, Jun 10, 2019 @ 05:06 AM

After a California ballot measure to expand rent control failed last November, lawmakers are looking into other options to curb the seemingly endless increase in the state’s rent prices. Legislators are weighing bills that would take dramatic steps to control prices like prohibiting landlords from raising the rent more than 5 percent per year after inflation. A new rent control proposition is also expected to be on the ballot in 2020, according to an article on Realtor.com.

On a local level, the city of Long Beach, where rent costs have shot up by more than 25 percent since 2014, is forcing some rental unit owners to pay for a tenants moving expenses if they raised the rent more than 10 percent in the previous year.

In San Diego, where rent prices are among the highest in the nation, someone making $40,000 per year may still need a roommate to avoid monthly living expenses eating away more than half of each paycheck.

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: Mortgage rates, Rent, California Housing Market, Rental Prices, High Rent, California Rent Prices

New housing for developmentally disabled breaks ground in San Diego

Posted by The Aramco Group on Tue, Oct 23, 2018 @ 10:10 AM

Ground has been broken on three new affordable apartment buildings in Otay Mesa which will housing people and families with developmental disabilities. Pacific at Playa del Sol includes a dozen units specifically for low-income residents which such disabilities. Rent costs will start at $730 for a single bedroom.

“Adults with developmental disabilities desire what we all desire,” said San Diego Regional Center Executive Director Carlos Flores. “Good jobs, benefits, good pay and a nice affordable place to live.”

Chelsea Investment Corporation, in collaboration with the County, the San Diego Housing Commision, the Foundation for Developmental Disabilities, Pardee Homes and Banner Banks. The apartments are promised to remain affordable until about 2074.

Meanwhile, 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: San Diego, Mortgage rates, Rent, Housing Affordability, Monthly Rent, San Diego Housing Commission, Affordable Housing, Rent Costs

San Diego rent prices hit new all-time high

Posted by The Aramco Group on Sat, Oct 13, 2018 @ 09:10 AM

Renters in San Diego are paying more than ever to lease a home, according to a new report. San Diego County’s average rent climbed to $1,960 per month in September, the highest average ever recorded. This data, which was compiled by MarketPointe Realty Advisors, shows that driving up the average are the nine new apartment complexes that opened this year with comparably high lease prices.

San Diego has grown to be notorious for its high cost of living, particularly for renters. Average monthly rent has grown at twice the rate of inflation in recent years which has brought it up to become the tenth most expensive rental market in the nation. More expensive markets include San Francisco ($3,650 monthly), New York City ($2,850 monthly) and San Jose ($2,470 monthly).

Still, experts are forecasting that rent prices may stabilize as the overall housing market cools. Already, year-over-year increases have slowed. September’s annual jump in rental prices was 5.74 percent, compared to 6.36 percent in 2017.

More expensive leases could give renters an incentive to become homeowners instead. 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: San Diego, Rent, Monthly Rent

ARAMCO Report - Thursday June 4, 2015

Posted by The Aramco Group on Thu, Jun 4, 2015 @ 16:06 PM

The Catch 22 of Renting before Buying

San Diego rents increased 5.5 percent between April 2014 and April 2015. That is equivalent to an increase of $123 per month as of April of this year, when the median monthly rent was $2,347 according to Zillow.

Renting is traditionally the stepping-stone to homeownership in the American dream, but while higher rents motivate people to buy a home and get out of the rental market they can also hinder homeownership by siphoning potential savings away from being used for a down payment.

Renters in high-income areas like San Diego can often pay higher than average percentages of their monthly income—sometimes up to 50 percent vs. an average of 30 percent nationally—on rents. This is because San Diegans’ median incomes have been 18.8 percent higher than the national average (approx. $63,000 vs. $50,000, via US Census), but their median monthly rental costs have been 72 percent higher than the national average ($2,347 vs. $1,364), as they were April 2015.

Mortgage programs from FHA, Freddie Mac and Fannie Mae—that have low down payments and that historically have lower interest rates—are meant to help qualified first-time homebuyers break this problematic cycle.

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.

Topics: San Diego County, home buying, San Diego, Down Payment, 30 year fixed rates, renting, Rent

ARAMCO Report - Monday May 11, 2015

Posted by The Aramco Group on Mon, May 11, 2015 @ 13:05 PM

San Diego’s vacancy rate must be incredibly low

Residential rents have gone up, renters will pay more, and—paradoxically—investments in real estate are down. How? The vacancy rate must be very low. The San Diego County Apartment Association (SDCAA) will conduct its next survey in June.

Rental Rates are up 5.4 percent in San Diego and nationally compared to one year before according to Zillow.com and the National Association of Realtors, respectively. In San Diego that means that rent in March 2015 was on average $2,339/month up from $2,218/ month in March 2014. 

At the same time, Rent.com released a survey during the week of May 4, 2015 that 55 percent of millennials would pay $150 more per month for their rent. That would equal to another 6.4 percent increase to the current prices cited above for San Diego.

However, the National Association of Realtors reports that the number of real estate sales made to investors is down to 14 percent in April 2015 from 20 percent at the same time last year.

Potential homebuyers looking for rest from the rental market will find conforming no point 30-year fixed mortgage rates average 3.875 meanwhile 15-year rates are closer to 3.125 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: real estate, investing, 30 year fixed rates, National Association of Realtors, Vacancy Rate, Investors, Rent, Renters