ARAMCO Report - The Mother of ALL Mortgage Blogs!

Good news for homeowners; bad news for buyers

Posted by The Aramco Group on Tue, Jul 28, 2015 @ 14:07 PM

The ever-increasing cost of housing and utilities in San Diego has caused a significant slowdown in overall economic growth. Incomes throughout the county have remained relatively stagnant – causing families to pay a higher percentage of their income to housing.

According to the S&P/Case-Shiller Home Price Index, homes in San Diego have increased 4.8 percent since last year, more than the national average. While this spells good news for homeowners, it also shows that families are growing unable to afford housing in the county. Reports claim that the fundamental issue is regulators indecision to approve new construction to keep up with demand, causing house prices and rent to rocket.

The silver lining is that FHA and VA loans provide low and no-down payment options while mortgage rates remain near historic lows. The conforming no-point 30-year rates are averaging of 4 percent and 15-year fixed rates are averaging 3.25 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 question may be featured in an upcoming article.

Topics: home sales, VA Loans, FHA, renting

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 4, 2015

Posted by The Aramco Group on Mon, May 4, 2015 @ 14:05 PM

Quarter of Renters use Half of Income on Housing

More than one in four renters use at least half of their monthly household income to cover housing and utility costs according to Enterprise Community Partners, a non-profit that analyzed Census data.  The same study identified that more than 30 percent of renters in California, Florida, New Jersey and New York are devoting the same amount of their household income to these expenses.

Household incomes have not kept pace with increases in rent according the National Association of Realtors. Typical rents have increased by 15 percent in the last five years but incomes have only increased by 11 percent over the same time period.

Meanwhile, mortgage Bonds are near unchanged to begin the week starting on May 4th. This week's calendar is on the light side until Friday’s big Jobs Report.

Renters might consider now to be the time to switch to being homeowners with mortgage rates near all-time lows. Potential homebuyers and homeowners looking to refinance will find conforming no point 30-year fixed mortgages averaging 3.875 percent while 15-year mortgages averaging 3.215 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.

Ask Mehran Aram

Topics: home prices, 30 year fixed rates, rental, Housing, renting, household income

ARAMCO Report - Tuesday April 28, 2015

Posted by The Aramco Group on Tue, Apr 28, 2015 @ 15:04 PM

Home ownership rates down but prices up

The Commerce Department reported that the national home ownership rate hit the lowest it has been since 1993 in the first quarter of 2015. The percentage of housing units being occupied by its owner was at 63.7 percent, which is 1.1 percentage points lower than the first quarter of 2014 (64.8) and 0.3 percentage points down from the fourth quarter of last year (64.0) respectively. Goldman Sachs analysts released a report on April 15 that says, “demographics support homeownership, tight credit does not.”

The national S&P/Case-Shiller Home Price Index has seen 34 months of positive year-over-year gains even with home ownership rates going down. Countrywide prices are still 10 percent below the high set during the 2006 housing bubble, but increasing prices, in light of the decrease in the homeownership rate, means that a substantial percentage of the housing inventory that was sold during the last decade was purchased by investors who are now renting the properties.

Home buyers and homeowners refinancing will find that conforming no point 30-year first mortgage rates average 3.875 percent while 15-year rates average 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.

Ask Mehran Aram

Topics: home prices, Housing Market, S&P Case Shiller, 30 year fixed rates, homeownership, renting, homes

ARAMCO Report - Wednesday March 18, 2015

Posted by The Aramco Group on Thu, Mar 19, 2015 @ 09:03 AM

Gap Between Housing Costs and Average Household Income Widening

There is a gap between rental costs and average household income, and it is widening. Typical rents have risen 15 percent across the country over the last five years, but income for renters is up by only 11 percent over the same period. Rents as growing portions of incomes—especially in high-cost areas—make it difficult for would-be first time buyers to save an adequate amount for a down payment. Housing starts need to rise if this trend is to be reversed, and February 2015’s housing starts statistics are down, but new permits granted have risen however. That means there’s hope that spring snowmelt will bring a much-needed defibrillation to home construction. Conforming no point 30 year fixed mortgage rates still average 3.875 percent with 15-year rates closer to 3.125 percent. And now for something completely different: Actors working as characters at Disney theme parks must go through an autograph training session so signatures are always the same.

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: residential construction, Disney, Housing Market, inventory, 30 year fixed rates, first-time buyers, Mortgage rates, renting, home price appreciation, homes

ARAMCO Report - Monday March 16, 2015

Posted by The Aramco Group on Thu, Mar 19, 2015 @ 09:03 AM

Five million renters across the US are planning to buy a home in the next twelve months according to the Zillow Housing Confidence Index. This figure is up 25 percent relative to the same time last year. According to additional research by Zillow, typical renters should expect to pay 30 percent of their monthly income to rent. Buyers however can expect to spend only 15 percent of their monthly income on their mortgage payment. This is due to the current combination of historically low interest rates and below-peak home values keeping mortgage payments relatively low. 52,000 of San Diego renters will be looking to buy a home in the next year. Conforming no point 30 year fixed mortgage rates kept averaging close to 3.875 percent, and the 15-year rate once again averaged 3.125 percent. And now for something completely different: Mexico allows painters, sculptors, and other artists to donate part of their annual production of artwork in lieu of paying taxes.

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: mortgage interest rates, San Diego, first-time buyers, rental, renting, financing, Mexico, Artists

ARAMCO Report - Friday February 20, 2015

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

According to the January 2015 Real Estate Investor Activity Report from Auction.com, investors bidding for property both at live events and online are favoring flipping homes over a hold-to-rent strategy. This despite the fact that demand for rental housing continues to grow. In the mortgage market there was upward pressure on rates following news that Greek officials, reached a deal with the EU for a 4 month extension of the Greek bailout. Conforming no point 30 year fixed rates average 3 7/8ths with 15 year rates closer to 3 1/8th. And now for something completely different… Did you know that the White House is not free for the president? He actually receives a bill for food and expenses every month.

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: real estate, Greek Debt Crisis, White House, Flipping Homes, 30 year fixed rates, renting, President

ARAMCO Report - Wednesday August 6, 2014

Posted by Mehran Aram on Wed, Aug 6, 2014 @ 17:08 PM

According to the U.S. Department of Commerce, U.S. homeownership hit a 19 year low in the 2nd quarter at 64.8%, as tight lending standards and tepid wage growth drive Americans toward renting. It peaked in 2004 at 69.4%. But in California last quarter, the number of homes that sold for a million dollars or more rose to its highest level in 7 years. Meanwhile conforming no point 30 year fixed mortgage rates average 4 1/4% with 15 year rates closer to 3 1/4.

And now for something, completely different: Did you know that the largest hotel in the world is the Izmailovo Hotel in Moscow, Russia? It has 7,500 rooms and 4 towers, each 30 stories high!

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: Aramco Report, and now for something completely different, home purchase, California, Aramco Mortgage, 30 year fixed rates, homeownership, Moscow, World's Largest Hotel, Russia, U.S. Department of Commerce, renting