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New-home sales re-approaching 12-year high

Posted by Mehran Aram on Fri, Sep 27, 2019 @ 06:09 AM

Low mortgage rates appear to be propping up the U.S. housing market as seen in a resurgence of new home sales in August. According to the Department of Commerce, sales of newly-constructed homes increased 7.1 percent on a month-over-month basis to a seasonally adjusted annual rate of 713,000, just shy of the 12-year high of 729, 000 set in June.

A drop in mortgage rates over the summer bolstered what was expected to be an otherwise unremarkable home-buying season. In addition, the low rates led to an increase in home-building activity as builders see the lower borrowing costs as an opportunity to push sales.

Demand for new housing is expected to remain high as the supply of homes available for sale remains low.

Today, conforming no-point 30-year fixed mortgage rates are averaging 3.75 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 buying, new home sales, U.S. Department of Commerce, Mortgage rates, low rates, Home Building, U.S. Housing Market, New Construction

San Diego home still selling for a premium

Posted by Mehran Aram on Sat, Aug 31, 2019 @ 08:08 AM

A decade removed from the Great Recession, the housing market in the U.S. appears to be normalizing. One indicator of this is that the share of homes selling above their original list price is dropping. Bidding wars over the limited number of homes for sale caused prices to soar well-above list prices for much of the last several years. But a new report from CoreLogic shows that the share of homes selling at or above list price has returned to early 2000 levels.

The peak was reached in Q2 2018 when 43 percent of all home sold in the U.S. went for more than asking. This is triple the level during the peak of the recession in early 2008. While this has dropped to 39.2 percent nationally as of this summer, San Diego stands apart.

The greater San Diego market remained just below the all-time high with 41 percent of homes selling at or above the list price. The region joins other hot markets like San Francisco (83 percent) that have bucked the national trend.

Meanwhile, 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, San Diego County, Housing Market, CoreLogic, Mortgage rates, San Diego Housing Market, San Diego Home Sales, U.S. Housing Market

San Diego home prices counter national trend

Posted by Mehran Aram on Fri, Aug 30, 2019 @ 07:08 AM

While home price growth is slowing down across the U.S., San Diego continues to defy the odds. The rate of home price appreciation in the region grew for the fifth consecutive month in June. This data is according to the latest S&P CoreLogic Case-Shiller National Home Price Index.

San Diego home prices grew 0.7 percent, faster than the national average of 0.6 percent. Local home prices have increased 1.3 percent over the past year.

A cooling of the housing market is being experienced nationwide as high price tags for available homes were beyond the average homebuyers budget. While this is true in San Diego as well, demand to purchase a home in America’s Finest City continues to drive prices higher.

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: San Diego County, home prices, Housing Market, homebuyers, Mortgage rates, San Diego Housing Market, S&P CoreLogic Case Shiller, San Diego Home Prices, Americas Finest City, U.S. Housing Market, Home Price Index

Consumer confidence in housing market at record high

Posted by Mehran Aram on Tue, Aug 13, 2019 @ 06:08 AM

Low mortgage rates and unemployment figures in July helped boost consumer confidence to the highest levels ever record. According to Fannie Mae’s monthly index, “confidence about not losing job” and “mortgage rates will go down” rose significantly.

Although home buyers continue to battle against rising prices and low inventory, particularly for entry-level homes, mortgage rates dropping last month helped boost confidence that the future of the housing market would remain strong.

More consumers reported in July’s survey that now is a good time to buy a home and a growing number of respondents believe that home values will continue to rise over the next year.

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: Housing Market, Fannie Mae, Mortgage rates, consumer confidence, home buyers, U.S. Housing Market, home inventory

Mortgage delinquencies spike

Posted by Mehran Aram on Fri, Aug 9, 2019 @ 16:08 PM

Following a record low in May, mortgage delinquencies nationwide shot up 11 percent in June to 3.73 percent. This is the biggest one-month spike in nearly 10 years. However, according to a statement from Black Knight, the abrupt increase may be a fluke related to the calendar.

“The month ended on a Sunday, which means servicing operations are closed on the last two days of the month and cannot process last-minute payments,” Black Knight said. The statement also noted that month’s ending in a Sunday have contributed to nine of the 10 largest single-month delinquency gains in the last seven years.

The June increase follows a record low the prior months when late payments fell to just 3.36 percent of all mortgaged homes. This has contributed to a historic low in foreclosures as well.

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: Black Knight, Mortgage rates, U.S. Housing Market, Mortgage Delinquencies

Housing market shifting in favor of buyers

Posted by Mehran Aram on Sat, Jun 8, 2019 @ 08:06 AM

After years of record low inventory levels, an influx of homes on the market is helping solidify speculation made by experts that 2019 may be the year the housing market finally shifts in favor of buyers. As mortgage rates decline, homeowners are seeing an opportunity to move and listing their home for sale.

“The U.S. housing market has largely favored sellers over the last several years as a result of the record-breaking low inventory and red-hot demand that led to intense competition and fast-rising home prices,” said Realtor.com’s Chief Economist Danielle Hale. “Slowing sales and growing inventories have caused supply to increase in many markets across the country.”

With more homes expected to be listed for sale this summer, the prevalence of bidding wars that have been seen in previous years is likely to be lessened.

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, Housing Market, National Association of Realtors, Mortgage rates, Realtor.com, U.S. Housing Market, National Housing Market