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Bold, new rent control law passes in Calif.

Posted by Mehran Aram on Sat, Sep 14, 2019 @ 08:09 AM

Lawmakers in California last week approved a statewide limit on annual rent increases for most tenants. This sweeping mandate is the latest step to curb rapidly rising rent prices in the State. Specifically, the new law, which would become retroactively effective as of March this year, caps annual rent price hikes to 5 percent after inflation.

The bill, as of this writing, will head to Governor Gavin Newsom’s desk where he is expected to sign it into law. He has made the housing affordability crisis in California a top priority of his administration.

California voters rejected a similar ballot initiative last year that would have allowed cities to impose more strict local rent caps.

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: inflation, Mortgage rates, Housing Affordability, Rent Control, Gavin Newsom, Governor Gavin Newsom, California Rent Prices, Golden State, Rent Hikes, California Rent Control, Rent Prices, Rent Cap, california voters

California lawmakers reach deal on rent control

Posted by Mehran Aram on Thu, Sep 5, 2019 @ 15:09 PM

Renters across California may soon find some relief from endless rent hikes as a result of an agreement reached between Governor Gavin Newsom and the Legislature. The proposal would cap the rate at which landlords can raise rent prices – a maximum of 5 percent plus inflation per year.

The bill now heads to both the State Senate and the Assembly for a vote. Although strongly opposed by landlords, should the bill pass as it is expected to do, would be a major victory for rents who have faced steep increases over the past several years. As more Californian’s found home prices unaffordable, demand for apartments increased, resulting in a rapid increase in lease costs.

Part of the compromise included an exemption on apartments built within the last 15 years from the rent cap – up from a period of 10 years proposed by tenant advocates earlier on.

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: Mortgage rates, Rent Control, California Housing Market, Gavin Newsom, California Rent Prices, California Home Prices, Rent Hikes

California rent control battle rages on

Posted by Mehran Aram on Mon, May 6, 2019 @ 05:05 AM

A new effort is underway in the state capitol to prohibit landlords from raising rent by more than 5 percent above the Consumer Price Index. The bill passed the Assembly's key Housing and Community Development Committee by a 6-1 vote last week.

Those opposed to the legislation say that Bill 1482 could disrupt the natural market and financially hurt property owners. California voters rejected Proposition 10 last November which would have implemented statewide rent control measures.

Gov. Gavin Newsom has stated that he favors measures to control rent hikes which he believes would help quell a housing affordability crisis in the State.

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: California, Mortgage rates, Housing Affordability, Rent Control, Bill 1482, Housing and Community Development Committee, Gavin Newsom

Prop 10 debate heats up ahead of mid-terms

Posted by The Aramco Group on Tue, Oct 16, 2018 @ 10:10 AM

The campaigns surrounding Proposition 10, a ballot initiative to be voted on next month, have kicked in to high gear as election day nears. The proposition would allow cities and counties across the state to expand rent control. Supporters say it will offer relief for renters and protect them against unreasonable or exorbitant rent increases. While opponents claim it could lower demand for housing and even prevent owners from setting rent prices according to market trends.

In total both sides of the ballot measure have raised a combined $75.55 million as of October. Opponents have out-raised the support campaign three-fold.

Another housing related ballot measure being put before voters in November include Proposition 1 which would authorize $4 billion in bonds for affordable housing programs. This proposition, unlike Prop 10 had no committees registered in opposition.

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: Mortgage rates, Rent Control, Proposition 10, Prop 10, Election Day, Prop 1, Proposition 1

California voters to decide on rent control measure

Posted by The Aramco Group on Sun, Oct 7, 2018 @ 09:10 AM

The rate at which rents are rising in California is unprecedented. More than half the state’s renters are spending 30 percent or more of their monthly income on rent according to the U.S. census bureau. Because of this predicament, organizers collected enough signatures earlier in the year to ensure that Proposition 10 is put before voters. The ballot measure would allow cities and counties across the state to expand rent control,

Supporters of the initiative say it will offer relief for renters and protect them against unreasonable or exorbitant rent increases. Opponents, on the other hand, claim it could lower demand for housing and even prevent owners from setting rent prices on rooms in their own homes.

While San Diego does not currently have any local rent control laws in place, other California cities do. The passage of Proposition 10 would give cities the discretion to expand rent control locally.

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 4.15 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, census bureau, California, Renters, Rent Control, Proposition 10