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Home prices continue slow climb

Posted by Mehran Aram on Sun, Aug 11, 2019 @ 08:08 AM

The pace of home sales in the U.S. has remained largely flat for the better part of 2019 but that hasn’t kept prices from continuing their upward journey. While the rate at which prices are climbing has slowed, single-family home prices nationwide remain at an all-time high. According to CoreLogic’s Home Price Index and HPI Forecast for June 2019, home prices in the U.S. are 3.4 percent higher than they were during the same month last year.

Prices also increased on a monthly basis, rising by 0.4 percent from May to June. CoreLogic predicts that the cost of a home will continue to rise as well. Experts anticipate another 5.2 percent increase over the next year.

Increases in home prices in the lower-end of the market are especially challenging for first-time buyers, however, mortgage rate near historic lows could help make monthly mortgage payments more affordable.

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: home sales, home prices, CoreLogic, single family homes, Mortgage rates, June Home Prices

Construction spending continues rough patch

Posted by Mehran Aram on Fri, Jul 5, 2019 @ 05:07 AM

A surge early in the year was not enough momentum to push construction spending higher in the second quarter. New figures for May released by the U.S. Census Bureau shows a 0.8 percent decline in construction spending from April. On a year-over-year basis, overall spending is off by 2.3 percent, largely due to it being dragged down by an 11.2 percent drop in residential construction.

Although new polling shows that homebuilders are optimistic about the future of the housing market, spikes in material costs and a labor scarcity is putting the brakes on increases in construction projects.

Homebuilders also appear to be focusing more on multi-unit dwellings like apartment buildings. As construction spending shrank in most other areas, multi-family spending rose 9.3 percent.

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: single family homes, Mortgage rates, Homebuilders, Construction Spending, U.S. Census Bureau

Americans purchasing fewer new homes

Posted by Mehran Aram on Thu, Jun 27, 2019 @ 05:06 AM

The rate at which homebuyers in the U.S. are purchasing new homes is currently at its lowest pace in over six months according to new data. Purchases of newly built single-family homes fell by 7.8 percent in May to a seasonally adjusted annual rate of 626,000, acording to the U.S. Department of Commerce. This is below economists’ expectations in a survey conducted by The Wall Street Journal who forecasted new home sales to be closer to 683,000.

As they sit on the market unsold, the supply of newly built homes on the market is increasing. New home inventory was approximately 6.4 months as of May, up from 5.6 months last year.

Sales of newly built homes have flatlined for most of the past year as builders failed to focus on entry level priced homes and instead flooded the market with larger, more expensive dwellings.

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: homebuyers, single family homes, new home sales, U.S. Department of Commerce, Mortgage rates

Home builder confidence

Posted by Mehran Aram on Thu, Jun 20, 2019 @ 16:06 PM

A slight gain in the confidence levels among home builders in the U.S. last month, was undone by a 2 point decline in June. Rising construction costs have long been cited as the major reason builders have been weary. Confidence levels are measured according to The National Association of Home Builders’ index.

“While demand for single-family homes remains sound, builders continue to report rising development and construction costs,” said NAHB Chairman Greg Ugalde.

In addition to grappling with rising costs, a shortage of skilled labor has also depressed confidence levels among the nation’s home builders. Despite this month’s drop, the index’s component measuring future conditions remains positive with a reading of 70.

Today, 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: Construction, Home Builders, single family homes, Mortgage rates, National Association of HomeBuilders, condo, condominium, Home Builder Confidence, Home Construction

Condo and townhome sales surge in San Diego

Posted by Mehran Aram on Sun, Jun 16, 2019 @ 07:06 AM

San Diego County saw closed sales of condominiums and townhomes shoot up seven percent from April to May according to the Greater San Diego Association of Realtors. This unusually large increase comes as the sales pace for single-family homes remained relatively unchanged.

Attached property sales climbed 7.3 percent in total from 983 in April to 1,055 in May. The price of a townhome or condominium grew 3.3 percent to a median price of $434,000 as of last month.

Meanwhile, single-family home sales in San Diego were flat, increasing 0.7 percent on a month-over-month basis and price rose just 1.2 percent. Compared to last year, sales of single-family homes are down 7.1 percent in the region.

Today, 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: home sales, San Diego County, San Diego, Greater San Diego Association of Realtors, single family homes, Mortgage rates, San Diego Housing Market, condo, San Diego Home Sales, San Diego Housing, Property Sales

Builder confidence gets a boost

Posted by Mehran Aram on Sun, Jun 2, 2019 @ 09:06 AM

Sales of newly built homes are on the rise, giving homebuilders a boost in confidence as the rest of the housing market seems to be in a slump. Builder confidence in newly built, single-family homes rose three points in May to a reading of 66. Anything above 50 is generally considered positive however this is lower than the reading of 70 in May 2018. This latest information comes from the National Association of Home Builders/Wells Fargo Housing Market Index.

Demand for new homes continues to remain high. The index’s component measuring sales expectations for the next six months rose to a reading of 72 last month.

“This lower-interest rate environment, along with ongoing job growth and rising wages, is contributing to a gradual improvement in the marketplace,” said NAHB Chief Economist Robert Dietz.

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: Housing Market, National Association of Home Builders, new homes, single family homes, NAHB, Mortgage rates, Home Builder Confidence

Home building on the rise

Posted by Mehran Aram on Sun, May 19, 2019 @ 07:05 AM

Single-family home construction increased in the U.S. in April, driving housing starts up. Overall housing starts climbed 5.7 percent over the last month according to data from the Department of Commerce. The volume of construction permits also increased, a signal that housing starts in the coming months will be positive as well.

Low unemployment, a strong economy and lower mortgage rates have produced robust buyer-demand for housing, but rising material costs and labor shortages have hindered growth over the past year. These latest numbers suggest that home builders are not being deterred by these less than favorable conditions.

Experts predict that should demand continue to remain high, housing starts in particular may show resilience even if the housing market experiences a broader slowdown.

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: Home Builders, single family homes, Housing Starts, U.S. Department of Commerce, Mortgage rates, Home Building, Low Unemployment, Construction Permits, Home Construction, Strong Economy, Department of Commerce

Home builder confidence remains flat

Posted by Mehran Aram on Fri, Apr 19, 2019 @ 05:04 AM

The confidence level among homebuilders in the U.S. appears to be holding steady even in the aftermath of the government shutdown that kicked off the year and the lackluster pace of home sales that followed.

The National Association of Home Builders/Wells Fargo Housing Market Index rose by one point to a reading of 63 in April, bolstered by low mortgage rates. Builder confidence has held steady in the low 60s for three consecutive months.

“Builders report solid demand for new single-family homes but they are also grappling with affordability concerns stemming from a chronic shortage of construction workers and buildable lots,” said NAHB Chairman Greg Ugalde. “Ongoing job growth, favorable demographics and a low-interest rate environment will help to modestly spark sales growth in the near term.”

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: Housing Market, National Association of Home Builders, Home Builders, single family homes, Mortgage rates, Housing Affordability, housing shortage, Affordability, Home Builder Confidence

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

Changes for gov’t flood insurance program announced for 2020

Posted by Mehran Aram on Wed, Mar 27, 2019 @ 08:03 AM

New rates for single-family homeowners who have flood insurance with the National Flood Insurance Program will take effect next year, under a new plan announced by the Trump Administration this week. The new system will now assess properties on an individual basis rather than using flood zone maps from the Federal Emergency Management Agency.

The new rates will be announced on April 1, 2020 and go into effect in October of that year. There are currently 3.5 million homes on public flood insurance that would see their rates change.

The government program allows home and business owners to buy federally backed flood insurance if private insurance carriers are too costly or unavailable in their area. The changes come as a series of natural disasters over the past several years have put the program in a financial bind.

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: single family homes, Mortgage rates, Homeowner, National Flood Insurance Program, Flood Insurance, Federal Emergency Management Agency