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Homeownership rate dips in Q2

Posted by Mehran Aram on Wed, Jul 31, 2019 @ 06:07 AM

The U.S. homeownership rate, which has slowly made a comeback after reaching a low-point in 2016, slipped slightly in Q2 2019. According to the Census Bureau, the rate fell on both a monthly and yearly basis to 64.1 percent. The homeownership rate in the costlier West was even lower as of the end of June at 59.3 percent.

The number of households in the U.S. that owned their home fell steadily for the 10 years following the Great Recession but began to reverse course in 2016 after hitting a low of 62.9 percent.

Homeownership is the highest among those 65 years of age or older at 78.0 percent and lowest for Millennials (those under 35) at 36.4 percent.

Today, conforming no-point 30-year fixed mortgage rates are averaging 4.00 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: homeownership, Mortgage rates, Homeownership Rate, U.S. Census Bureau

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

Construction spending flat in April

Posted by Mehran Aram on Wed, Jun 5, 2019 @ 05:06 AM

After a surge earlier in the year, construction spending in the U.S. was relatively flat from March to April. According to data released by the U.S. Census Bureau, total construction spending in April was $1.3 trillion, roughly the same as March and 1.2 percent below the same month last year.

Increases in spending over the last several months have been driven largely by spikes in residential construction. Homebuilders are optimistic about the future of the housing market but are struggling to meet buyer demand for single-family homes.

Low mortgage rates and the summer home buying season is expected to keep demand for homes elevated through the coming months at least.

Today, conforming no-point 30-year fixed mortgage rates are averaging 3.875 percent, 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: Mortgage rates, Homebuilders, Construction Spending, U.S. Census Bureau

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