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. 

1004 E Tempe Drive Tempe, AZ 85281

$1,490,000
6 Beds
4.5 Baths
4,186 SqFt
Status Active
MLS # 6774897
Property Type Single Family Residence
Price Type --
Perfect opportunity for luxury living or investment property in the heart of Tempe. Where luxury meets convenience in this stunning 6-bedroom, 4.5-bathroom home boasts an impressive 4,186 square feet of living space with plenty of space to entertain, 2 master suites and 2 kitchens. Sold fully furnished and move-in ready. Step outside and be greeted by a private paradise. The meticulously landscaped outdoor space features a brand new sparkling pool, perfect for those scorching Arizona days or heat it up during the cold season. But why stop there? Ascend to the rooftop deck and take in breathtaking views of the surrounding area - it's the ideal spot for stargazing or entertaining friends. Location is key, and this home delivers. Just minutes away from ASU, Tempe Town Lake, and Scottsdale, you'll find endless opportunities for recreation. Currently run as a successful AirBnb, this is an investors dream. Could be rented as is or converted to 2 separate housing units for additional revenue as there are already separate entrances, seperate kitchens, laundry's, etc. so you would just need close in one small wall upstairs. Since it comes fully furnished it could be up and running in no time. Owner can provide proof of rental income upon request.

2325 N 64th Street Scottsdale, AZ 85257

$1,488,000
4 Beds
3 Baths
2,637 SqFt
Status Active
MLS # 6733867
Property Type Single Family Residence
Price Type --
PRICED BELOW APPRAISAL! Great value. Experience modern luxury in this newly constructed contemporary masterpiece located near Old Town Scottsdale. Custom designed with high-end finishes throughout, this home offers the ultimate in sophisticated living. The heart of the home is a chef's dream kitchen featuring Fisher and Paykel appliances, perfect for culinary enthusiasts and entertainers alike. Upstairs, the primary suite exudes comfort and elegance, while an entertaining loft boasts stunning mountain views and opens onto a second-story deck through expansive glass doors. On the first floor, a second en suite guest room provides privacy and comfort for visitors. The backyard is a sanctuary with a Thermador swim spa, ideal for relaxation and fitness. Swim against the jets for training or simply relax. This home combines contemporary design with luxurious amenities, offering a lifestyle of comfort and sophistication.

2993 S Tourmaline Drive Unit 34 Flagstaff, AZ 86005

$1,485,000
3 Beds
3.5 Baths
1,860 SqFt
Status Active
MLS # 6745060
Property Type Townhouse
Price Type --
This highly desirable, luxury condo offers an open floor plan with no steps, a private entry guest Casita, and a spacious walled-in wrap-around patio. Built in 2023, this home is packed with upscale features, including a Sub-Zero side-by-side refrigerator, Wolf oven/range, and built-in microwave. Enjoy Quartz countertops, a 7' kitchen island with bar seating, and a Tongue and Groove ceiling. The custom-built wet bar features a Sub-Zero wine refrigerator and copper bar sink. Additional luxuries include glass-fronted cabinets, an extended stone fireplace wall with a linear gas fireplace, and automated window coverings throughout, including blackout shades in the primary bedroom. Note: Pine Canyon membership is separate and not included. Over $76,000 Additional Upgrades Include: Kitchen dry bar in niche, including a subzero wine refrigerator with matching cabinets and under cabinet lighting. Upgraded Kitchen marble countertops. Fireplace cabinetry with floating shelves. Beams added in living room. Custom chandeliers throughout home. Garage epoxy flooring. Dynomat material between master/shared wall for noise cancelation. Custom built ins in kitchen cabinetry and drawers. Motorized power shades throughout home with blackout. Patio railing with gate that isn't included with units.

1604 E Sheena Drive Phoenix, AZ 85022

$1,485,000
4 Beds
3 Baths
3,367 SqFt
Status Active
MLS # 6770534
Property Type Single Family Residence
Price Type --
Property is currently in the process of being staged and final punch list completed. 12ft ceilings, single level no interior steps, DESIGNER INTERIOR JEWEL BOX PROPERTY WITH INCREDIBLE VIEWS!!! Unlike anything available on the market currently for sub $2m+. Designer interior and finishes. Bedrosians tile and hardwood. New roof, windows, pool surface and tile, pool filter, solid core doors. TRANE AC units. 3 car garage! Split floor plan. Premium oversized corner lot. Best lot orientation that has views from every room. Get it before it is completed and sold. Buyer to verify all facts and figures.

11430 E Palomino Road Scottsdale, AZ 85259

$1,485,000
3 Beds
2.5 Baths
2,694 SqFt
Status Active
MLS # 6767594
Property Type Single Family Residence
Price Type --
Welcome to Stonegate, one of Scottsdale's most sought after guard gated communities. Ideally located just minutes from shopping, golf, hiking, freeway access, Mayo Clinic. Perfect for full or part time residents. Resort style amenities include tennis, pickle ball, an olympic size pool, children's play area and walking trails. This light and bright home has been completely remodeled w/ designer finishes throughout which provides a modern yet comfortable vibe. The laundry room even feels like a sanctuary! Located on an interior cul-de-sac lot with mature landscaping and privacy. Walls of glass provide a beautiful transition from indoor- outdoor living where you can relax under the large covered patio or enjoy the resort style pool.Upgraded garage, new roof, new AC units etc.Truly a must see

29825 N 78th Way Scottsdale, AZ 85266

$1,485,000
4 Beds
2.5 Baths
3,047 SqFt
Status Active
MLS # 6777822
Property Type Single Family Residence
Price Type --
Beautiful North Scottsdale Home on Large Cul-De-Sac Lot. Perfectly Updated w/ Large, Open Great Room, Walls of Windows, Gas Fireplace, open to Kitchen w/ New White Shaker Cabinets, Crown Molding, Stainless Double Ovens, Gas Cooktop, Quartz Counters & Island. Fully Remodeled Primary Suite w/ Sitting Area & All New Flooring, Two Walk-in-closets, Deluxe Tub & Shower, Chandeliers & French Doors, opens to Covered Patio & Resort Style Backyard. Entertain all ages w/ the Travertine BBQ & Bar Top, Paved Patio w/ Sun Shades, Basketball Court, In-ground Trampoline, Low Maintenance Turf & Beautiful Pool + Spa. Over 400k in Upgrades including, Long Pavered Driveway, Outdoor Lighting in Front & Back, Two New HVAC, Water Heater, Anderson Windows, Electrical, Garage Door Motor, Pool Equipment & More.

3428 E Clarendon Avenue Phoenix, AZ 85018

$1,484,900
4 Beds
3.5 Baths
2,741 SqFt
Status Active Under Contract
MLS # 6737229
Property Type Single Family Residence
Price Type --
Welcome to this exceptional home in the desirable Pomelo Park neighborhood! This beautiful property offers 4 bedrooms, a versatile bonus room perfect for an office, gym, or playroom, & 3.5 bathrooms. The home features a split floorplan, elegant fixtures, & shutters throughout, The gourmet kitchen opens to a stunning family room with 20-foot ceilings & a dramatic stacked stone fireplace. It boasts high-end cabinetry, a large kitchen island, quartz countertops, a stylish backsplash, a walk-in pantry, & Viking & KitchenAid appliances. The front yard features low-maintenance artificial turf, while the private backyard is an entertainer's dream with an outdoor kitchen, gas BBQ, expansive covered patio, misting system, & a putting green. Plus 2 Trane HVAC units installed 2023. This is the one!! All of this & so much more plus located near all of the Arcadia Hot Spots! Centrally located with easy access to downtown Phoenix, Bitmore, Arcadia, Scottsdale and the airport. Walking & biking distance to LGO, Ingos, Postinos, Trevors, and so much more!

2222 N Val Vista Drive Unit 3 Mesa, AZ 85213

$1,480,000
4 Beds
4.5 Baths
4,289 SqFt
Status Active
MLS # 6783281
Property Type Single Family Residence
Price Type --
Beautiful single story custom home in the exclusive gated community of Avalon Grove. This sophisticated home sits on a generous ¾-acre lot. Elegant formal living room boasting north facing expansive glass windows. Formal and in-kitchen dining rooms. Kitchen has both design and functionality, featuring Wolf and Subzero appliances. Don't miss the large pantry! Cozy family room with a built-in fireplace and entertainment center. Master suite with large walk in shower, jetted tub and elegant wardrobe closet. There are three en suite bedrooms, a large laundry room and a separate, stunning office/den that with custom shelving and coffered ceilings. Back yard has two attached and one detached storage areas. RV parking, a variety of citrus, grass, desert plants, stone accents + large patios Circular drive way, large 8 car slab parking and oversized three car garage. Garage has upper cabinets, storage shelves and tool chests. So many upgrades in and out. Top rated schools, easy freeway access. A must see!

28341 N 112th Way Scottsdale, AZ 85262

$1,480,000
3 Beds
3 Baths
3,003 SqFt
Status Active
MLS # 6748198
Property Type Single Family Residence
Price Type --
Seller willing to carry! Experience a blend of modern luxury and architectural brilliance in this meticulously remodeled 3-bedroom, 3-bathroom masterpiece near Troon North in Scottsdale. No expense has been spared in this complete transformation, offering the finest high-end finishes and bespoke details. The home is graced with oversized 32'' x 32'' porcelain tiles in a stunning White Carrera/Calcutta Marble finish, providing a seamless and elegant foundation throughout. Each spa-inspired bathroom is a sanctuary of luxury, featuring dual shower systems, Kohler Veil wall-hung toilets, Brizo and Lefton fixtures, and wall-hung vanities with high gloss and glass/metal finishes, topped with quartzite and glass countertops. The kitchen, a culinary work of art, boasts natural quartzite countertops, an oversized island with a waterfall edge, and a 12-inch bar overhang. The iridescent glass backsplash adds depth and dimension, while Miele appliances bring precision and sophistication. The kitchen flows effortlessly into the expansive living room, where a Modern Flames fireplace, elegantly wrapped in Carrara Marble, creates a warm and inviting ambiance. NanaWall patio doors seamlessly connect the indoors to the spacious backyard, which features natural desert landscaping, offering a serene and low-maintenance outdoor experience. The home is bathed in natural light, thanks to all-new storefront metal-framed windows. The exterior is painted in a warm white, perfectly complementing the modern design. Inside, the level 4 drywall is flawlessly finished, highlighted by LED recessed lighting and custom fixtures that enhance the home's contemporary aesthetic. Every detail, from the state-of-the-art fixtures to the impeccable craftsmanship, has been thoughtfully curated to create a residence that epitomizes luxury living. This home offers an unmatched opportunity to own a piece of modern elegance in one of Scottsdale's most sought-after locations. Whether you're looking for a personal retreat or a sound investment, this property promises a lifestyle of unparalleled quality and refinement.

12775 E Gold Dust Avenue Scottsdale, AZ 85259

$1,480,000
4 Beds
3 Baths
2,900 SqFt
Status Active
MLS # 6768969
Property Type Single Family Residence
Price Type --
Arizona territorial home PLUS GUEST HOUSE, enter through the inviting courtyard, whole interior has gorgeous saltillo tile floor, wood vigas and beautiful decorative Mexican tile, all on one level, NO steps! Expansive eat-in kitchen is full of natural light with stainless appliances, huge granite top island with gorgeous views of the pool, spa and desert landscape. 14 foot ceiling adds dimension to the beehive fireplace and territorial architecture. 1 bedroom CASITA is the perfect office work space or guest house with it's own bathroom, kitchen and living area, double glass doors lead to the diving pool and spa. Mountain views with a peak of Camelback, (no HOA) and quiet cul-de-Sac (very private). Bonus: BASIS (AZ #1 high school) is only one block. **Pictures coming soon 🙂

1681 Black Canyon Trail Heber, AZ 85928

$1,480,000
8 Beds
8 Baths
4,662 SqFt
Status Active
MLS # 6752440
Property Type Single Family Residence
Price Type --
LOCATION! CUSTOM cabin on 4+ acres with amazing mountain views, no traffic, custom finishes throughout, 8 bedroom suites so each bedroom has a private en-suite bathroom, custom showers and custom vanities! Private shared well and this cabin has a separate 2500 gallon water tank, heated bathroom floors, Upgraded AC systems, custom metal shake roof, exterior finishes are hardie board so virtually maintenance free, custom wood floors, custom designed finishes throughout, vaulted ceilings, large deck with fireplace, detached garage, instant hot water system with multiple water heaters, custom kitchen cabinets with granite counter-tops, central vacuum system, dual side by side fridge/freezers and so much more! This cabin is priced for a quick sell! Seller may carry mortgage with good offer!

325 W Gurley Street Unit 302 Prescott, AZ 86301

$1,477,000
2 Beds
2 Baths
2,719 SqFt
Status Active
MLS # 6750468
Property Type Apartment
Price Type --
Imagine a stunning New York-style penthouse nestled in the heart of downtown Prescott, Arizona. This luxury residence designed by well-known New York architect Dan Kiser and finished by Haley Construction, blends the urban elegance of a Manhattan loft with the charming, historic backdrop of Everyone's Home Town. A private elevator with coded access offers the ultimate in luxury and security, ensuring that only authorized individuals can reach the penthouse, enhancing privacy and exclusivity. This penthouse boasts soaring ceilings, expansive windows, and an open-concept floor plan that invites natural light and showcases views of Prescott's famous Gurley Street and Iconic Granite Mountain. The interior is sleek and modern, featuring polished concrete and bleached wood floors, and high-end finishes. The spacious living area boasts a linear gas fireplace which serves as the centerpiece of the living area. Set within a stone surround and a ceiling height bleached wood accent wall, this fireplace makes a bold statement against the backdrop of the expansive view windows. The living area flows seamlessly into a gourmet kitchen, with Caesarstone counter tops, custom cabinetry, wine storage, a large island with seating, top of the line stainless steel appliances, and a Sub-Zero refrigerator. Large sliding doors lead from the dining area to a private terrace, where you can relax and enjoy the sights and sounds of downtown Prescott. This outdoor space is perfect for entertaining, with room for a dining set, or lounge chairs. The Primary suite exudes tranquility, with floor-to-ceiling windows and is the epitome of relaxation and refined luxury. The high ceilings and expansive layout make the space feel open and airy, giving the room a peaceful ambiance, perfect for unwinding after a long day. This room is designed with comfort in mind, featuring ample space for a king-sized bed and additional seating, so you can create your own personal retreat Connected to the primary suite is the custom-designed walk-in closet for him, a true masterpiece of organization and style. The closet features built-in shelves for accessories, along with deep drawers and hanging rods that allow for organization of your wardrobe. Adjoining the Primary Bathroom is the walk-in closet for her, which has been masterfully designed to combine elegance with practicality. Custom-built shelves, drawers, and hanging spaces provide ample storage for everything from your wardrobe essentials to accessories and jewelry. The custom tile walk-in shower in the master bathroom is a true work of art, designed to evoke a spa-like experience right at home. With its floor-to-ceiling tiles in soothing tones, this spacious shower is both visually stunning and highly functional. The sleek, frameless glass enclosure creates an open, airy feel, including a rainfall fixtureprovides a luxurious bathing experience. The master bath also boasts a large jetted soaking tub and is the ultimate indulgence, designed to provide a spa-like retreat right within your home. One of the many features of the master suite is the private access to the terrace. The terrace is perfect for enjoying a quiet morning coffee or unwinding at night with a glass of wine under the stars. Stepping outside of this luxurious space, one of the most appealing features of this penthouse is its prime location in downtown Prescott. Just a few minutes' walk from your front door, you'll find yourself in the heart of the famous Courthouse Plaza. This iconic square, lined with historic buildings, boutique shops, and lively restaurants, is the cultural and social hub of Prescott. Whether you're looking to enjoy a morning coffee at a local café, catch a live concert or community event, or simply stroll through the tree-lined park, the plaza offers something for everyone. Living here means you can experience the charm and vibrancy of downtown Prescott without ever needing a car, making your lifestyle both convenient and enriching. This penthouse captures the essence of big-city luxury while embracing the serene, small-town charm of Everyone's Hometown of Prescott, making it a unique and desirable living space.