The Aramco Group is fully operational, although our corporate branch might be closed or operating with limited hours due to COVID-19. Personnel are ready and available via phone, e-mail, and other virtual means to provide assistance with any of your mortgage needs. To get more information you can submit an information request on our contact page and a mortgage adviser will reach out to you shortly.

Consumer buying power boosts home sales

Consumer buying power boosts home sales

Consumer buying power boosts home sales
December is generally a sluggish month for home sales but according to new data, the end of the year saw an increase that surprised some economists. Potential existing-home sales increased during the month according to First American’s Potential Home Sales Model. December 2019 saw sales tick up by 1.2 percent in total.

The increase was driven by a combination of low mortgage rates and strong wages for workers according to the report.

“The primary driver of rising housing market potential compared with one year ago was increased house-buying power,” said Mark Fleming, First American’s chief economist. “According to our analysis, lower rates boost housing market potential.”

Fleming adds that the lower rates are also promoting a wave of refinances from existing homeowners who are choosing to stay in their homes longer.

Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 3.5 percent and 15-year rates are near 3.0 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.