ARAMCO Report - The Mother of ALL Mortgage Blogs!

San Diego housing trend spells good news for entry-level buyers

Posted by Mehran Aram on Sun, Jun 9, 2019 @ 07:06 AM

A recent study from Realestate.com shows that the rate of home price appreciation in San Diego for dwellings in the lower third of prices is slowing. Homes in the bottom-third of the market appreciated at a rate of 2.2 percent annually as of April, that’s down significantly from the 10.4 percent price jump seen between 2017 and 2018. The slowdown in price growth for these entry level homes may make it easier for first-time buyers to get in the market.

Of course, entry-level homes in San Diego still come with a nearly half-million dollar price tag. Although the San Diego Housing Commission offers down payment assistance and that can potentially be coupled with programs like an FHA loan which allows buyers to purchase a home with as little as 3.5 percent down.

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: San Diego, real estate, Mortgage rates, San Diego Housing Market, San Diego Housing Commission, Housing Trends, San Diego Housing

Nearly half of renters wish they were owners

Posted by Darius Aram on Mon, Jun 3, 2019 @ 05:06 AM

Despite the increased cost, repairs, taxes and insurance, 45 percent of renters regret renting instead of being able to buy a home. This is more than five times the share of homeowners (8 percent) who regret buying instead of renting. This information comes from a survey conducted by Zillow Research.

The top two regrets that renters have include not being able to build equity in a property and not having the ability to customize or improve their home. This was followed by feeling that that rental prices are simply too high.

87 percent of renters have regrets about their current home compared to 72 percent of people who own. San Diego ranked near the top, with 91 percent of renters reporting at least one regret.

Meanwhile, 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: San Diego, homeowners, home equity, Zillow, homeownership, Mortgage rates, Renters, San Diego Housing Market, Rental Prices

San Diego home prices holding steady

Posted by Mehran Aram on Fri, May 31, 2019 @ 06:05 AM

Home prices in the San Diego metropolitan area held relatively steady in April on a year-over-year basis according to new figures released this week by CoreLogic. Although this is a rebound from last month when the Southern California region saw its first yearly drop in prices since 2012, San Diego home price gains remain the lowest in the nation.

"The slowdown in price growth and sales over the past year suggests that despite a healthy economy, the cost of homeownership has outpaced incomes for many,” said Andrew LePage, research analyst for CoreLogic.

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: San Diego County, home prices, San Diego, CoreLogic, homeownership, Mortgage rates, San Diego Home Prices

Underwater homes still exist

Posted by Mehran Aram on Tue, May 14, 2019 @ 14:05 PM

While home values have risen rather steadily for the last several years, there remains a notable number of American homeowners who are still underwater. According to ATTOM Data Solutions, more than five million homes were seriously underwater as of the first quarter of 2019. For a home to be considered seriously underwater, the balance of the mortgage is at least 25 percent more than what the home is worth.

San Diegans on the other hand are on the opposite end of the spectrum with one of the lowest underwater rates in the nation. Approximately 40 percent of property owners in San Diego are equity rich, meaning the value of the home is more than 50 percent of its mortgage. This is consistent with the rest of California where 43 percent of homeowners are equity rich.

Higher levels of equity combined with low mortgage rates have led to a surge in refinances as of late. 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: San Diego County, San Diego, homeowners, home values, Mortgage rates, Underwater, ATTOM Data Solutions, Q1 2019, Underwater Homes, Equity Rich

U.S. homeownership rate dips

Posted by Mehran Aram on Wed, May 1, 2019 @ 06:05 AM

Sluggish increases in the homeownership rate in the U.S. has been one of the long-lingering effects of the Great Recession and new data suggests that the road to recovery is still a long one. Information from the U.S. Census Bureau shows that the homeownership rate fell from 64.8 percent at the end of 2018 to 64.2 percent in the first quarter of 2019. This is the first quarterly decline in more than two years.

The share of Americans who own a home briefly dipped to its lowest rate since 1965 in 2016. The rate has been slowly climbing to its historic average of 65 percent ever since. These latest figures are a setback as a result of first-time buyers finding starter homes beyond affordable.

The homeownership rate in San Diego peaked in 2006 when 63 percent of San Diegans owned their home. As of late, that number is closer to 55 percent.

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: San Diego County, San Diego, homeownership, Mortgage rates, Homeownership Rate, U.S. Census Bureau, Q1 2019

Homeowners perception of home values off the mark

Posted by Mehran Aram on Thu, Apr 18, 2019 @ 06:04 AM

Homeowners’ view of their home value was not in alignment with appraisers during the month of March. According to the National Quicken Loans Home Price Perception Index, the gap between a homeowner’s perception of their home value and that of a professional appraiser widened significantly last month. The gap grew by 25 percent compared to February.

San Diego’s data painted a different picture, however. Residents within the County actually underestimate their home values by about 0.93 percent. This is a wider gap than the one seen in January when San Diego homeowners undershot their values by 0.86 percent.

The variance between the national average and San Diego suggests that home values in the region continue to climb at a rate greater than what homeowners anticipate.

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: San Diego County, San Diego, homeowners, home values, Mortgage rates, San Diego Housing Market, Appraisers, Home Appraisal, Quicken Loans

San Diego home sales rebound after sluggish start to 2019

Posted by Mehran Aram on Mon, Apr 15, 2019 @ 05:04 AM

Sales of existing homes in San Diego County climbed a whopping 28.2 from February to March according to new data. The Greater San Diego Association of Reatlors released a report last week that showed single-family home sales numbered 1,721 last month. This is up from 1,342 the month prior.

Lower mortgage rates helped push the March figures higher. Last month’s increases in home sales are a rebound from a seasonal low in January.

Home prices also increased in San Diego with the median cost for a detached home rising 0.3 percent to $630,000 as of March. 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: San Diego, Greater San Diego Association of Realtors, existing home sales, single family homes, Mortgage rates, San Diego Housing Market, median home price, San Diego Home Sales, San Diego Median Home Price

San Diego is a retirement hot spot

Posted by Mehran Aram on Sun, Apr 14, 2019 @ 08:04 AM

If you’re looking for moderate weather year-round, pristine beaches and the flexibility of a suburban life with a little urban thrill nearby, San Diego is an ideal place to retire in. This is why millions of retirees are making San Diego their new home. In fact, according to a new report, the city ranks number 14 nationwide of best places to retire.

One of the drawbacks may be San Diego’s cost for housing but experts are quick to point out that for seniors, this may not necessarily be a deal breaker. Powerful financial tools like a HECM for Purchase (H4P) eliminate the cost barrier to buying a home. H4P is a home loan insured by the Federal Housing Administration that allows those 62 or older to combine their down payment with loan proceeds from a reverse mortgage.

Launched in 2008 by the FHA, H4P is easier to qualify than a conventional loan and can be used for the purchase of a single-family home, townhome and FHA-approved condominiums. Most appealing is that they loan requires no monthly mortgage payment and can help free up much needed cash in retirement.

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: Reverse Mortgage, HECM, San Diego, Retirement, Reverse Mortgage for Purchase, HECM for Purchase, San Diego Housing Market

San Diego listed among best places to live, again

Posted by Mehran Aram on Fri, Apr 12, 2019 @ 07:04 AM

Residents of America’s Finest City recognize the greatness of their hometown. But now that sentiment is immortalized in print according to a recent report by U.S. News & World Report. This is far from the first time San Diego has made the list of the best places to live in America.

To assemble the list, the report evaluated 125 of the most populous metropolitan areas in the U.S., raking them on various lifestyle factors such as jobs, desirability and home values. San Diego was ranked number 36 in the nation. For the third year in a row, Austin landed the top spot.

San Diego scored one of the highest rankings in the desirability factor largely based on the proximity to the beach and favorable weather.

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: San Diego, Mortgage rates, best places to live in America., Americas Finest City, U.S. News & World Report, best places to live

San Diego home sellers cutting prices

Posted by Mehran Aram on Sat, Mar 30, 2019 @ 06:03 AM

San Diego County was one of only three major metropolitan markets in the U.S. to see an annual decrease in seller gains, down 5 percent from January 2018. This is according to an analysis by ATTOM Data Solutions. Real estate website Trulia is also reporting that San Diego had the second-most home price reductions in the nation so far in 2019.

While price reductions are not uncommon when market conditions lean towards buyers such as during the winter and when mortgage rates drop, San Diego hasn’t had so many cutbacks in home prices in nearly five years. Twenty percent of homes for sale in the County had a price reduction in February, the most of any California city.

Discounts off the initial list price suggest that the market is responding, albeit slowly, to the affordability crunch buyers in the region have been experiencing. 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, San Diego, Trulia, Mortgage rates, home price appreciation, San Diego Housing Market, San Diego Homeowner, ATTOM Data Solutions