ARAMCO Report - The Mother of ALL Mortgage Blogs!

Valentine’s Day geography

Posted by Mehran Aram on Thu, Feb 14, 2019 @ 05:02 AM

When chocolates and roses just aren’t enough for your special Valentine this year, what is more romantic than real estate? And for lovebirds looking to really get swept up in the holiday, it’s Valentine’s Day year-round in Valentine, Arizona; Valentine, Nebraska; Valentine, Texas and Valentine, Virginia. They’re all small towns in remote parts of their state, but they have a lot of heart.

If living in a city named for a martyred saint from the Middle Ages doesn’t speak romance to you, you could try Romance, Wisconsin or head north to Lovers Leap, California. You could stop at Arrow, Idaho on the way to Cupid, Oklahoma. If you can’t afford Diamond, Wyoming, you could try Gold, Pennsylvania.

While all these places sound ideal for sweethearts, it’s San Diego that was previously named by Travel+Leisure as one of America’s most romantic cities. Today, soulmates will find conforming no-point 30-year fixed mortgage rates are averaging 4.25 percent, 15-year rates are near 3.75 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: Valentine's Day, San Diego

Home buyer bidding wars at record low

Posted by Mehran Aram on Wed, Feb 13, 2019 @ 12:02 PM

In yet another sign that the housing market may be slowing down, online real estate brokerage Redfin reported this week that the number of home buyers who are facing bidding wars has decreased substantially over the last few months, reaching a near record low in January.

Just 13 percent of offers written by Redfin agents had multiple offers, little changed from December’s record low and down from 53 percent a year ago. Redfin reports that San Diego is one of the most competitive housing markets in the nation yet still saw a dramatic decrease in bidding wars over the past year. Eighteen percent of San Diego offers faced competition, compared to 63 percent in January 2018.

Only one in five San Diego buyers faced a bidding war last month, compared to over half last year.

Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 4.25 percent, 15-year rates are near 3.75 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: home buyers, Housing Market, bidding war, San Diego, San Diego Housing Market, Mortgage rates

One in four home purchases made with cash

Posted by Mehran Aram on Wed, Feb 6, 2019 @ 05:02 AM

Purchasing a home with cash is on the slide nationally compared to the peak years of 2011 and 2012 but there are still pockets around the country where all-cash transactions are growing at a rapid pace. According to ATTOM Data Solutions’ Year-End 2018 Home Sales Report, released last week, over a quarter of home sales last year were completed without a mortgage.

Nationwide, cash sales for 2018 accounted for 27.8 percent of single-family home and condo purchases, unchanged from 2017 but still well above the pre-recession average of 18.7 percent.

San Diego is one of just 20 metropolitan areas where cash sales rose by double digits over the past year with a 10 percent gain.

Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 4.375 percent, 15-year rates are near 3.75 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: cash purchase, Single Family Home, condo, condominium, San Diego, Mortgage rates

Growing number of homebuyers making 6-figures

Posted by Mehran Aram on Sat, Feb 2, 2019 @ 14:02 PM

The income disparity between property owners and renters appears to be growing. According to a new report from Zillow Research, more than one-third of today’s homebuyers make more than $100,000 per year. Homeowners have historically had higher income levels and this latest data proves that this reality is not only continuing but the wealth inequality gap is widening.

Zillow reports that those that purchased a property in 2017 earned more than 62.7 percent of U.S. households overall, up from 59.7 percent in 2012. The simple reason behind this trend is that incomes are not keeping up with home prices. While home prices have soared 50 percent in the past seven years, incomes have crept up just 11.3 percent.

In San Diego, the average owner household income is $116,756 compared to a renting household’s income of $53,000.

Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 4.375 percent, 15-year rates are near 3.875 percent and the 5-year ARM is averaging 4.375 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: homebuyers, Zillow, San Diego Housing Market, San Diego, Mortgage rates

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