What’s Ahead For Mortgage Rates This Week – May 31, 2016

What's Ahead For Mortgage Rates This Week - May 31, 2016Last week’s economic reports included new home sales, pending home sales along with weekly mortgage rates and new jobless claims.

New Home Sales Surpass Expectations

Sales of new homes surpassed expectations and the prior month’s reading. April’s reading of 619,000 sales exceeded expectations of 523,000 new homes sold and 531,000 new homes sold in March.  New home sales rose by 16.60 percent on a seasonally adjusted annual basis, which was the highest increase in 24 years. 

Analysts said that April’s new home sales indicate that builders are increasing production of new homes to meet high demand for homes. Short inventories of available homes are credited with driving up demand and home prices. Buyers seeking family homes are contending with investor buyers and cash buyers in popular markets.

With affordability becoming limited in many cities, first time and moderate income homebuyers aren’t buying as many homes as they once did. This development contributes to slowing markets, as move-up buyers generally rely on first time buyers to purchase their homes. 

Shortages of available homes has pressured home builders to break ground on new home construction projects, but builders continue to cite labor shortages and a lack of buildable lots as reasons why they aren’t building homes as fast as homes are needed. 

Pending Home Sales Numbers Suggest Peak Buying Season Returns

Pending home sales were also higher than forecast in April with a reading of 5.10 percent as compared to expectations of 0.80 percent for April and the March reading of 1.60 percent. Pending home sales gauge future closings for home sales and reached their highest level in 10 years and posted a year-over-year gain of 4.60 percent. 

Three of four regional readings for pending home sales posted gains, with home sales in the Midwest posting slower growth. On a year-over-year basis, he South posted a gain of 6.80 percent and the Northeast posted a gain of 1.20 percent. The West saw a jump in pending sales with a reading of 11.40 percent after posting a negative reading in March. 

April’s expansion in new and pending sales suggests that the peak home buying season is back.

Mortgage Rates Rise; New Jobless Claims Fall

Freddie Mac reported higher average mortgage rates. The rate for a 30-year fixed rate mortgage was six basis points higher at 3.64 percent; the rate for a 15-year mortgage rose eight basis points to 2.89 percent. The average rate for a 5/1 adjustable rate mortgage rose seven points to 2.87 percent. Discount points averaged 0.50 percent for all mortgage types. 

New jobless claims dipped last week to 268,000 as compared to an expected reading of 275,000 new claims and the prior week’s reading of 278,000 new claims. Analysts said that New York school employees that were eligible for benefits boosted jobless claims earlier in May due to a non-typical law that allows some school workers to draw unemployment during school closures such as spring break or labor disputes.

Whats Ahead This Week

This week’s scheduled economic news includes Case-Shiller Home Price Indices, construction spending and reports on inflation, core inflation and consumer sentiment. No reports were scheduled for Monday due to the Memorial Day holiday. 

21242 N 80th Way Scottsdale, AZ 85255

$1,550,000
3 Beds
3.5 Baths
2,532 SqFt
Status Active
MLS # 6773622
Property Type Single Family Residence
Price Type --
This breathtaking home in the highly desirable community of Grayhawk Raptor is nestled nicely at the end of a cul de sac and central in the neighborhood. Within close proximity to all your recreational and highly rated restaurants, this home boasts of extensive stone work all throughout. Take in the serenity of the calming desert gardens all throughout the home and enjoy the brand new hot tub surrounded by it all! Make it all yours!

3010 E Sierra Vista Drive Phoenix, AZ 85016

$1,550,000
3 Beds
3.5 Baths
2,450 SqFt
Status Active
MLS # 6784813
Property Type Single Family Residence
Price Type --
Opening the front door reveals a huge airy living room & fireplace, a high open ceiling & picturesque views beyond the patio majestically framing PIESTEWA PEAK just beyond the formal living room opening to private patio & pool. Spacious primary bedroom suite enjoys the view & walk out to the covered patio & yard, Primary Spa styled twin vanities, large walk-in closet & natural lighting. Sky Light & a glass brick wall illuminate the kitchen w a gourmet GAS cooktop close to formal dining with desert views opposite a Breakfast room & counter along a lovely garden atrium. Two upstairs bedrooms each ensuite with walk-in closets. Total 3 bedrooms, 3 full baths plus a powder room. Approximately 2,450 square feet. Recent New Roof & HVAC System installation & more w pride of ownership CLICK MORE 2 new GAS FURNACES & 2 new A/C units installed in 2021 NEW ROOF installed 2020 - 10-year warranty to 2030. NEW Front Door, 2021 New Interior & Exterior Paint, 2020 New Ceiling Fans, New Hot Water Heater, New Refridgerator 2022 NEW PELLA Doors & Windows on level 1 in 2023 New Carpeting 2022

20488 N 95th Place Scottsdale, AZ 85255

$1,550,000
4 Beds
2.5 Baths
2,501 SqFt
Status Active
MLS # 6784673
Property Type Single Family Residence
Price Type --
Upgraded luxury living in beautiful DC Ranch! This home has seen a total transformation with custom updates and high-level finishes throughout including a stunning open kitchen and oversized island with new cabinets, gas cooktop, countertops, appliances and great storage. New wood floors throughout, wet bar with beverage fridge and built-ins, washer/dryer, all plumbing fixtures, sinks, toilets and fresh paint on the interior and exterior. The landscaping was completely redesigned including new plants, pavers, lighting, pergola, artificial turf, built-in BBQ, gas fireplace with seating, and a Zen fountain with views of the McDowell Mountains. Both HVAC units and all windows have been replaced as well! This home truly is move-in ready, located in a gated community that is walking distance to the highly coveted Market Street for shopping, dining and entertainment, as well as around the corner from the new Desert Camp Community Center featuring an expanded fitness center, pool & spa, basketball, tennis & pickleball courts, walking paths & more!

12113 E Sahuaro Drive Scottsdale, AZ 85259

$1,550,000
4 Beds
2.5 Baths
3,125 SqFt
Status Active
MLS # 6786461
Property Type Single Family Residence
Price Type --
This custom Scottsdale home is situated on an expansive cul-de-sac lot with unobstructed mountain views, exceptional privacy, and a 3-car garage. Inside, 12-ft vaulted ceilings, a custom star-and-cross tile inlay, engineered wood floors, and a two-sided fireplace create a warm ambiance. The chef's kitchen is a showpiece with white-oak cabinetry, Calacatta Prado Quartz countertops, Z-line appliances, a pot filler, a stylish walk-in pantry, and a drink fridge. The luxurious primary suite offers tray ceilings, a cozy built-in fireplace, and a serene private seating area. Additional highlights include a chic powder bath, an expanded laundry room with oak cabinetry, and a versatile drop station. The backyard is an entertainer's dream, featuring a sparkling pool, artificial turf, lush desert landscaping, a mature shade tree, and a built-in BBQ. Conveniently close to top-ranked schools and hiking trails!

28640 N 76th Street Scottsdale, AZ 85266

$1,550,000
4 Beds
3 Baths
3,362 SqFt
Status Active Under Contract
MLS # 6775775
Property Type Single Family Residence
Price Type --
Nestled in the heart of North Scottsdale, this expansive 2.5-acre estate offers the perfect blend of luxury, space, and potential for customization. Set against a backdrop of the stunning desert landscape, the territorial-style home showcases the timeless beauty of Saltillo tile floors, bringing warmth and character to every room. With 4 spacious bedrooms and a charming courtyard entry, this home welcomes you with a serene ambiance and elegant design. Ample space surrounds the property, making it ideal for the discerning buyer looking to create a custom equestrian setup, build additional garages, or add sport courts to enhance the estate's recreational offerings. The centerpiece of the backyard is a large, sparkling pool, complete with a slide and diving board, perfect for family fun and entertaining. For those seeking panoramic views of Scottsdale's breathtaking sunsets, the rooftop deck offers an unbeatable vantage point.

20612 W Colter Street Buckeye, AZ 85396

$1,550,000
3 Beds
3.5 Baths
3,383 SqFt
Status Active
MLS # 6775381
Property Type Single Family Residence
Price Type --
Welcome to a luxurious David Weekley masterpiece in the exclusive Victory at Verrado, a 55+ community that combines resort-style amenities with serene, golf course living. This 3,383 SF Spanish-style home sits on a prime lot with mountain, golf course, and city light views. With a highly sought-after Fruition floorplan, it offers 3 bedrooms, 3.5 baths, and is loaded with custom upgrades that make it as functional as it is beautiful. The home's curb appeal is undeniable, with a charming Spanish-inspired exterior and low-maintenance, meticulously landscaped front yard. As you approach, a grand walkway leads to the entry, setting the stage for what lies within. Step inside and you're immediately struck by the openness of the floorplan and the abundance of natural light streaming through expansive windows and a unique interior/exterior courtyard. This open-concept layout and the seamless flow from the grand entry into the main living space create a welcoming atmosphere for relaxation and entertainment. As you round the corner into the shared living areas, you're greeted by sweeping golf course views. The living room is anchored by an upgraded fireplace and opens to a chef's kitchen equipped with top-of-the-line Thermador appliances, including an oversized refrigerator with a wine door attachmenta thoughtful touch for those who love to entertain. The kitchen counters are elegant Quartz, and the island countertop features a stunning stone finish, adding to the space's modern yet inviting design. Thoughtfully placed under-cabinet and island lighting add to the kitchen's cozy ambiance, perfect for evening gatherings. A spacious walk-in pantry completes the kitchen, providing ample storage for those who thrive in the culinary arts. The dining area, positioned just off the kitchen, is perfect for hosting and offers more stunning views that make each meal a memorable occasion. The split floorplan ensures privacy, with a primary suite that feels like its own retreat. The master bedroom features plush carpet flooring and a luxurious ensuite bath, complete with Quartz counters and beautifully tiled finishes. The walk-in closet connects conveniently to the laundry room, an incredibly practical and elegant feature. Additionally, a versatile den/office boasts a built-in real wood library with dual desks and custom lighting, making it an ideal space for work or relaxation. An unexpected bonus awaits in the garage, which features a 2-car tandem setup, comfortably fitting up to 3 vehicles. Throughout the home, wood flooring extends through the main living areas, enhancing the warm and timeless appeal, while tile graces the bathrooms for both style and practicality. The backyard is an entertainer's paradise and a peaceful retreat, designed to make the most of Arizona's breathtaking landscape. Enjoy a private pool with water features, string lights for evening ambiance, and multiple outdoor seating areas, including a cozy firepit lounge. This outdoor space offers unobstructed views of the golf course, mountains, and the city lights of downtown Phoenixa backdrop that transforms each sunset into an event. Resort-style amenities in Victory at Verrado include access to state-of-the-art fitness facilities, pools, and the renowned Victory Golf Course. This home's combination of high-end finishes, stunning design, and an unbeatable location makes it truly one-of-a-kind. Don't miss the opportunity to experience this exceptional property!

3354 E Jaeger Circle Mesa, AZ 85213

$1,550,000
6 Beds
4.5 Baths
5,420 SqFt
Status Active
MLS # 6778272
Property Type Single Family Residence
Price Type --
Nestled in the desirable, gated community of Arboleda, this beautifully updated semi-custom home is set along charming, citrus-lined streets. Thoughtfully designed with custom molding throughout, this spacious home showcases a gourmet kitchen featuring a GE Café double oven and newer appliances, perfect for hosting gatherings. The home offers a versatile layout ideal for families, with six generously sized bedrooms, including a grand master suite, and a game room for endless entertainment. Enjoy real wood flooring and tile throughout, with a bonus flex space off one bedroom and a split floor plan offering privacy for the master suite and office. The family room boasts a custom fireplace and built-in bookcase, adding warmth and character. Step outside to two covered patios overlooking .... a large pebble-tech pool and a backyard filled with mature citrus trees, including Arizona Sweets, navel oranges, and lemons. The 4-car garage, complete with storage cabinets and attic space, completes this home's unique appeal.

22770 Fox Ranch Road Munds Park, AZ 86017

$1,550,000
3 Beds
2.5 Baths
2,416 SqFt
Status Active
MLS # 6662555
Property Type Single Family Residence
Price Type --
All reasonable offers considered! Act fast to secure with built in equity since its listed below 3 appraisals! Open to investor offers! Flexible Financing Available Seller willing to carry with sizeable down and Interest rates tailored to fit your needs. Peace & Quiet on 11+ Acres Perfect for Short Term Rental, running a business, hobby farm, or simply embracing tranquility. Price Lowered - Owner Extremely Motivated! Over 300k in Equity immediately! ACT NOW NO HOA, 11.98 Acres Bordering the majestic Coconino National Forest, this property offers a rare opportunity to live in harmony with nature while enjoying Munds Park amenities just a stone's throw away. -Custom Home Features Stainless appliances, wood stove, entertainers bar, spacious bedrooms, large mudroom, and more! Available fully furnished! -Peace of Mind Amenities Equipped with Briggs & Stratton generator, septic system, and shared well for continuous comfort. -Equestrian Paradise Full arena, round pen, cross-fenced areas, shelters, and out-buildings provide everything you need to care for your horses. A haven for both horse and rider! -Four-Season Comfort Mild climate ensures year-round enjoyment of your outdoor pursuits. Don't miss out on this once-in-a-lifetime opportunity to own your slice

9602 E Allison Way Scottsdale, AZ 85262

$1,550,000
5 Beds
4 Baths
4,004 SqFt
Status Active
MLS # 6695491
Property Type Single Family Residence
Price Type --
Price Improvement! New roof underlayment & newly resurfaced pool. Welcome to this cul-de-sac home in the gated community of Mirabel Village! Experience this stunning property with a short film (not a photo slideshow - 2nd image click play) showcasing the elegant interior and resort-like grounds. After, further explore this impressive home with a full interior 3D walk-through. Tour this home at your own pace. 1.2 acres featuring a heated pool, spa, fire pit and BBQ pergola. Expansive private courtyard with fireplace and access to attached casita. Iron entry door opens to a foyer and formal living room with fireplace. The main home features 4 bedrooms, 3 full bathrooms, a total of 3 interior fireplaces, stacked stone accent walls, window shutters, soaring ceilings and built ins throughout.

37202 Ne Greythorn Circle Carefree, AZ 85377

$1,550,000
3 Beds
3.5 Baths
3,088 SqFt
Status Active
MLS # 6732284
Property Type Single Family Residence
Price Type --
This nearly new Catalonia model by Toll features a fantastic great room split floor plan w/great Black Mountain views in gated Reserve at Tranquil Trail. 3 ensuite bedrooms, 3.5 baths, an office, & a bonus room plus a 3 car garage all on one level w/a gorgeous pool/spa & gazebo. Upgrades throughout including courtyard entry w/travertine pavers & modern water feature, huge great room w/sliding pocket door, gas fireplace, wood-look tile floors, dark wood cabinets, granite counters, glass tile backsplash, SS appliances, custom lighting, clerestory windows, plantation shutters, & ceiling fans. Large primary bedroom w/lavish bath featuring dual sinks, floating tub, tiled shower surrounds w/dual shower heads, & walk-in closet w/organizers. Great secondary en suite bedrooms and bonus room in

10914 E Cinder Cone Trail Scottsdale, AZ 85262

$1,550,000
3 Beds
2.5 Baths
3,900 SqFt
Status Active
MLS # 6758237
Property Type Single Family Residence
Price Type --
Luxury home in Candlewood Estates at Troon North * Open, 3 bedroom plus office and bonus room, game room, formal dining room and living room with zero interior steps * Private north/south exposure lot with mountain and sunset views * Resort-style outdoor living with a pool, covered dining patio, built-in BBQ and gas fireplace * A 3-car garage completes the residence *

8170 E Golden Spur Lane Carefree, AZ 85377

$1,550,000
4 Beds
4.5 Baths
3,809 SqFt
Status Active
MLS # 6764276
Property Type Single Family Residence
Price Type --
Amazing Custom Home with detached casita (footage calculated in total). Nestled between gorgeous mountain vistas and natural wash valleys on 2.6 acres of land. Grande porte cochere towers over the private drive entry with gorgeous double wrought iron entry doors. Home opens to a 2-story foyer with gorgeous vistas and natural lighting overlooking pool/spa. Natural stone floors, marble & granite accents and tops, other pillar accents throughout. Newly refinished cabinetry adds a modern touch to an otherwise elegant space. 2-story patio shadows a large exterior entertaining zone flanked by a gorgeous pebble tech pool/spa and detached pool/guest house. This home truly is a desert gem!