ARAMCO Report - The Mother of ALL Mortgage Blogs!

Higher loan limits coming in 2019

Posted by Mehran Aram on Mon, Dec 3, 2018 @ 05:12 AM

The Federal Housing Finance agency announced last week that mortgage giants Fannie Mae and Freddie Mac will increase their lending limits next year as a result of nationwide home-price gains. Currently, the maximum conforming loan limit for single-unit properties is $453,100. This will increase to $484,350 in 2019.

Loan limits are based on median home prices in a given metropolitan area. Higher limits assist buyers by providing access to better financing terms on a new mortgage or refinance. Loans that exceed these limits are generally referred to as jumbo or non-conforming loans.

Housing market like San Diego are typically given significantly higher loan limits to allow for the higher median home price. For 2019, the conforming high balance limit in San Diego will increase from $649,750 to $690,000.

Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 4.875 percent, 15-year rates are near 4.25 percent and the 5-year ARM is averaging 4.5 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: loan limits, Federal Housing Finance Agency, FHFA, Fannie Mae, Freddie Mac, San Diego, Housing Market

Cash-out refinances at 11-year high

Posted by Mehran Aram on Wed, Nov 28, 2018 @ 16:11 PM

8 out of every 10 refinances happening in the U.S. are cash-out refinances according to new data. This is the highest volume of American’s choosing a cash-out option during the refinancing process since 2007. This is according to mortgage giant Freddie Mac’s data for the third quarter.

The report shows that a little over 88 percent of borrowers who refinances in Q3 elected a cash-extraction, totaling $14.6 billion in liquidated equity. This is down from $15.8 billion in Q2, likely due to a slow-down in refinance activity amid higher mortgage rates.

Cash-out refinances are particularly popular in California, the nations’ highest concentration of homeowner equity. Today, conforming no-point 30-year fixed mortgage rates are averaging 4.875 percent, 15-year rates are near 4.25 percent and the 5-year ARM is averaging 4.5 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: cash out refinance, Freddie Mac, Mortgage rates, homeowners, California, San Diego

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

San Diego ranks among hottest housing markets for 2018

Posted by The Aramco Group on Fri, Oct 19, 2018 @ 08:10 AM

Every year Realtor.com studies 32,000 ZIP codes in all fifty states and determines the average time it takes to sell a home. Using this data, the online real estate site is able to determine the “hottest” ZIP codes in the nation and rank them according to that hotness. This year, as in the last several, San Diego landed the number 20 spot.

Homes at the top of the list sell in an average of 20 days, according to the report. This is 46 days faster than the rest of the country. Kentwood, Michigan (ZIP code 49508) ranked number one with a hotness score of 99.4. Homes in the area sell in 14 days on average and listings receive up to four times the views than those in the rest of the country. ZIP code 92129, which includes Rancho Penasquitos, Black Mountain, Spyglass Hill and other in demand areas of San Diego amassed a hotness score of 96.6.

This area is known to be a relatively affluent part of San Diego with good school and family-friendly neighborhoods, likely adding to its hotness.

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, San Diego Housing Market, Housing Market, home sales, Mortgage rates

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

Foreclosure filings at lowest levels since 2005

Posted by The Aramco Group on Fri, Oct 12, 2018 @ 12:10 PM

The number of Americans whose properties are at some point in the foreclosure process has fallen to a 13-year low according to new data. Homeowners with default notices, scheduled auctions or bank repossessions is down 6 percent as of Q3 compared to Q2 and down 8 percent from last year. This latest information comes from ATTOM Data Solutions’ Q3 2018 U.S. Foreclosure Market Report.

In total there were 177,146 U.S. properties with foreclosure filings last quarter. This represents a 36 percent decrease from the pre-recession average of 278,912. Counter to the national trend, there were some major metropolitan markets where foreclosure starts increased including in San Diego. There were 744 filings in San Diego, up four percent from last year.

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: foreclosure, Default Notices, Foreclosure Filings, San Diego County, San Diego, Mortgage rates

Tide turns for long-time housing inventory shortage

Posted by The Aramco Group on Thu, Oct 11, 2018 @ 12:10 PM

Years of short supply and bidding wars may have finally reversed course, at least on the West Coast. A new report shows a significant turning point for home inventory levels in many regions including in California.

Redfin reports that when analyzing housing inventory nationwide, the biggest increases the volume of homes for sale were seen predominantly in the west. San Jose topped the list with a whopping 86.7 percent increase in home inventory compared to a year earlier. San Diego landed the number five spot on the list with a significant 26.8 percent increase in the number of homes on the market. This is in stark contrast to Q3 2017 when San Diego was seeing double-digit year-over-year decreases in housing supply.

Experts caution however that the increase is in part due to home sales falling, hence sales are no longer outnumbering new listings. This is likely due to prices reaching a tipping point for most buyers.

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: Housing Inventory, Housing Market, San Diego Housing Market, San Diego, home sales, California Housing Market

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: California, Rent Control, Renters, census bureau, Proposition 10, San Diego

Home affordability at 10 year low

Posted by The Aramco Group on Sat, Oct 6, 2018 @ 10:10 AM

Home prices in U.S. may not be climbing as fast as they were at the beginning of the year, but new data shows that Americans are still feeling the affordability crunch. ATTOM Data Solutions released its Q3 2018 U.S. Home Affordability Report last week which showed that home prices in the third quarter were at the least affordable level since 2008.

“Rising mortgage rates have pushed home prices to the least affordable level we’ve seen in 10 years, both nationally and at the local level,” said Daren Blomquist, senior vice president at ATTOM. “Close to one-third of the U.S. population now lives in counties where buying a median-priced home requires at least $100,000 in annual income.”

In San Diego County the annual income needed is higher than the national average at $160,745 based on the current median home price in the region of $570,000.

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 4.15 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: home affordability, home prices, median price, San Diego, San Diego County

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