What’s Ahead For Mortgage Rates This Week – December 19, 2016

Housing news was boosted by the National Association of Home Builders Housing Market Index, which posted its highest readings since July of 2002. In other news, the Federal Reserve’s Federal Open Market Committee voted to raise the federal funds rate and Fed Chair Janet Yellen gave a press conference. Mortgage rates rose and weekly jobless claims fell.

Home Builder Confidence Highest in 14 Years, Home Construction Lags

According to the National Association of Home Builders, builder confidence in housing market conditions reached its highest rate since 2002 in December. The NAHB Housing Market Index reading topped out at 70 as compared to November’s reading of 63. Analysts said that December’s high reading resulted from a post-election bump in builder confidence. While high builder confidence could bode well for supplies of new homes, construction rates continued to lag strong economic indicators such as low unemployment and high demand for homes. While builders gained confidence in current and projected housing market conditions, they continued to face shortages of labor and buildable lots.

Fed Raises Rate

The Federal Open Market Committee of the Federal Reserve announced it would raise the federal funds range by 0.25 percent to 0.50 to 0.75 percent. FOMC said strengthening job markets, lower unemployment and rising household spending supported the decision to raise the federal funds rate. Inflation, while below the Fed’s target of 2.00 percent, is gradually moving toward the Fed’s medium term goal. FOMC’s statement indicated that the Fed’s monetary policy would remain accommodative.

Fed Chair Janet Yellen held a press conference and cited “considerable progress” toward the Fed’s dual mandate of maximum employment and price stability as factors supporting the decision to raise the target federal funds range. Labor markets continue to improve; Chair Yellen said that the economy has added 180,000 jobs per month over the last three months. 15 million jobs have been added in the past seven years. Inflation is growing gradually, and the Fed expects to achieve its target inflation rate of 2.00 percent over the next two years.

Month-to-month consumer spending readings held steady at 0.20 percent growth. Core consumer price index data, which excludes volatile food and energy sectors, rose from 0.10 percent to 0.20 percent in November.

Mortgage Rates, Weekly Jobless Claims

Mortgage rates were higher last week, but Freddie Mac said that its survey data was collected before FOMC raised the federal funds rate. Analysts at Freddie Mac suggested a wait-and see position on rate forecasts due to the changing political climate. The average rate for a 30-year fixed rate mortgage was three basis points higher at 4.16 percent; the average rate for a 15-year fixed rate mortgage rose one basis point to 2.37 percent and the average rate for a 5/1 adjustable rate mortgage was two basis points higher at 3.19 percent. Average discount points for fixed rate mortgages held steady at 0.50 percent and dipped to 0.40 percent for a 5/1 adjustable rate mortgage.

New jobless claims were lower last week at 254,000 claims filed. Analysts had expected a reading of 250,000 new claims based on the prior week’s reading of 258,000 new claims filed. Volatility in weekly readings for new jobless claims can be expected due to seasonal hiring and layoffs.

Whats Ahead

Next week’s economic releases include readings on new and previously-owned home sales, inflation and consumer sentiment. Readings for mortgage rates and new jobless claims will also be released.

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5721 N 13th Street Phoenix, AZ 85014

$649,000
3 Beds
2 Baths
1,213 SqFt
Status Active
MLS # 6782306
Property Type Single Family Residence
Price Type --
This beautifully remodeled ranch-style home, located in the desirable north central corridor, offers 3 bedrooms and 2 bathrooms. Completely renovated in 2022, it boasts an open floor plan, custom cabinetry, stainless steel appliances, a gas stovetop, and a large center island - perfect for both cooking and entertaining. Both bathrooms have been tastefully updated. The home is adorned with new wood-look plank tile throughout, The backyard is a true retreat, complete with a large covered patio and a newly installed heated pool. Additional features include dual-pane windows, recessed lighting, a new AC unit (2022), new shutters, completely updated plumbing and electrical systems. located near the area's best dining and the highly sought-after Madison schools.

1800 N 156th Drive Goodyear, AZ 85395

$649,000
3 Beds
3 Baths
2,558 SqFt
Status Active
MLS # 6782725
Property Type Single Family Residence
Price Type --
Check out that marble flooring! What a Grand entrance into this immaculate 3-bedroom, 3 bath home located in a cul-de-sac lot near a playground. This home features plantation shutters, a kitchen to delight any picky chef with so much space and extended granite counter tops to include a large enough breakfast bar to seat the family. The guest suite features a separate living space with living area, which includes separate washer, dryer hooks ups and separate bed and bath. To top it off the backyard is a blank canvas for completing your entertainment dreams.

1424 E Coronado Road Phoenix, AZ 85006

$649,000
3 Beds
2 Baths
1,700 SqFt
Status Active
MLS # 6784755
Property Type Single Family Residence
Price Type --
Stunning 1700 Sq. Ft. (1412 main; 288 detached office) Spanish Craftsman Revival in Coronado. Fully renovated with 3 spacious bedrooms, 2 bathrooms, large dining room and brand New kitchen cabinets, countertops and backsplash. New updates include a brand new AC unit, Low-E Premium dual pane windows from Anlin, premium vinyl flooring, newer water heater, New 200Amp electrical panel, New copper electrical wiring with grounding in the entire house, new exterior and interior paint, and New ABS plumbing and sewer lines throughout the house and all the way outside to clean-outs. Both bathrooms have been remodeled with new flooring, cabinets and shower tile. No detail left untouched! +++This home includes a detached 288 Sq Ft office/studio/gym/yoga studio with a moving glass wall, 10 foot wide bi-fold door perfect for allowing the outdoor elements In when weather permits. Premium vinyl flooring and separate mini split AC unit. The attic has been closed and insulated.

3233 S Lebanon Lane Tempe, AZ 85282

$649,000
3 Beds
2 Baths
1,626 SqFt
Status Active Under Contract
MLS # 6717336
Property Type Single Family Residence
Price Type --
Welcome to your new home in Tempe! This fully remodeled property has brand new flooring, gray quartz waterfall countertops, white shaker cabinets, new fans, and modern finishes throughout. The roof has a 5-year no-leak warranty, 20-year underlayment, and lifetime shingle warranty. Outside, enjoy a covered patio and a sparkling diving pool on a spacious lot. The home also features a newer AC and furnace, shingles replaced in 2018, no HOA, and excellent nearby schools. Visit this weekend before it's gone—homes in 85282 at this price don't last! The property includes 1,466 sq. ft. plus a 160 sq. ft. attached laundry room.

235 W Liberty Lane Payson, AZ 85541

$649,000
3 Beds
2 Baths
1,378 SqFt
Status Active Under Contract
MLS # 6751212
Property Type Single Family Residence
Price Type --
Rural living but close to town amenities! Suburban ranchette features 2.65 acres fenced and cross fenced for horses and other live stock. Fenced organic garden area and orchard. Numerous storage buildings, fenced chicken compound with coup, tack shed, large craft/work shed, oversized two car garage. Private well on property, plus an interest in Community well. Round pen set up with walker.

16234 E Links Drive Fountain Hills, AZ 85268

$649,000
2 Beds
2 Baths
1,878 SqFt
Status Active Under Contract
MLS # 6766788
Property Type Apartment
Price Type --
You'll love this 2 bed, 2 bath PLUS office single-level condo with golf course views & 2 car garage in Balera at Firerock! Step inside to an open greatroom with high ceilings. The kitchen is the heart of the condo with walls of cabinets, large island, stainless appliances, granite counters & tile backsplash. The main bedroom also has golf course views & large ensuite bath with dual vanity, soaking tub, walk-in shower & ample walk-in closet. The guest bedroom is split & offers direct access to the guest bath - making it a mini-ensuite. The 3rd room has pocket doors-perfect for office, bedroom or hobby room. Relax inside or on your patio while taking in the views of Firerock Golf Course. All this plus the gated lock-and-leave Balera Lifestyle with community pool & fitness room! View today!

17201 E Rockwood Drive Fountain Hills, AZ 85268

$649,000
3 Beds
2 Baths
1,720 SqFt
Status Active
MLS # 6774894
Property Type Single Family Residence
Price Type --
Welcome to your private oasis! This beautifully updated 3-bedroom, 2-bath home features a stunning pool, serene yard with a tranquil waterfall and great Red Mountain Views!! Vaulted ceilings create an airy feel in the living and dining areas. The family room connects to an updated kitchen (2024) with granite countertops, new appliances, and a large island. The split bedroom layout ensures privacy, while the master bath boasts an updated dual vanity and stylish tile backsplash. Recent upgrades include a new R/O system (2023), hot water heater (2022), pool equipment (2020), HVAC (2018), and a partial remodel of the master bath (2024). Located in a well-maintained neighborhood with easy access to Shea, this home is a true gem!

5115 E Zenith Lane Cave Creek, AZ 85331

$649,000
3 Beds
2 Baths
1,861 SqFt
Status Active
MLS # 6784366
Property Type Single Family Residence
Price Type --
This 3/4 acre lot has a single level 1,861 sqft., 3 bedroom/2 bathroom home and a detached 4 car garage with room to add on. Move in or put your own custom touches on it and enjoy your expansive lot with natural Arizona landscape including Saguaro's, fruit trees and mature trees. Park your RV on the lot and store your toys in the extended length area of the garage. Set in a great location in Cave Creek and not far from the shopping, restaurants and nightlife in famous Carefree.

17621 N Eagle Crest Drive Surprise, AZ 85374

$649,000
2 Beds
2 Baths
2,273 SqFt
Status Active
MLS # 6761486
Property Type Single Family Residence
Price Type --
Sun City Grand 2 bed 2 bath w/Den on Granite Falls South Golf Course with a great view of #16 green. Quartz counter tops and maple cabinets at the kitchen, carpet and tile throughout. A gas fireplace at the living room, double sinks at master bath and bay at master bedroom. Closet shelving system at master closet. Shutters and honeycomb blinds for window coverings, Ceiling fans, solo tubes, & water softener. Extended 3 car garage w/cabinets and a work bench. Step onto the extended e facing patio for great views and a built in gas BBQ.

8442 S 22nd Street Phoenix, AZ 85042

$649,000
4 Beds
3 Baths
2,915 SqFt
Status Active
MLS # 6776403
Property Type Single Family Residence
Price Type --
Welcome to your stunning 4-bedroom, 3-bath home near South Mountain! Enter through a charming front courtyard into a spacious living area w/ soaring ceilings, elegant wood-look flooring, and a captivating stone fireplace. The chef's kitchen features wood cabinetry, luxurious granite countertops, stainless steel appliances, and convenient breakfast bar island. The first-floor primary bedroom offers private outdoor access and a spa-like ensuite with dual sinks and a garden tub. Enjoy breathtaking views from multiple balconies. The air-conditioned 2nd garage is perfect for a workshop or future casita & includes a hidden wall safe. Nearby access to the Mormon Trailhead for outdoor adventures and close proximity to Phoenix amenities, this home perfectly blends comfort, luxury & adventure. Continue upstairs and into the cozy loft w/balcony access, where you can spend a relaxing Sunday afternoon! Secondary bedrooms all come w/plush carpet for added comfort! Lastly, the lovely backyard includes a covered patio, lush natural turf, and a seating area w/a pergola! Your new home is waiting for you, hurry and act now!

22909 N Las Positas Drive Sun City West, AZ 85375

$649,000
2 Beds
2 Baths
1,837 SqFt
Status Active
MLS # 6776318
Property Type Single Family Residence
Price Type --
Discover luxurious living in this exquisite 2 bedroom, 2 bathroom + Den home, perfectly positioned within the exclusive Corte Bella Country Club. Offering privacy and elegance, this San Ysidro model spans 1,837 sq ft and is ideally situated with breathtaking views of the 13th fairway and green. The home features a redesigned kitchen with white cabinetry, designer backsplash, upgraded countertops, and a full stainless steel appliance package. Recent upgrades include a 2022 new A/C unit, a 2018 water heater, and a 2023 irrigation system overhaul. Enjoy a resort-style backyard providing a private escape with extended patios, multiple entertaining areas, fresh gravel, 2020 misters, and a newer BBQ Bar Top. Perfect for relaxing enjoying the views or hosting lively gatherings. The custom media wall with a fireplace and the den wall changed with entrance off the hallway enhance this home's charm and functionality, especially with den having its own private exit to patios. Secure your piece of paradise in this gated community, renowned for its seclusion and refined living. Don't miss out on this popular San Ysidro model with golf views from almost every room, a gem for those seeking luxury and comfort.

25645 W Blue Sky Drive Wittmann, AZ 85361

$649,000
4 Beds
2 Baths
2,139 SqFt
Status Active
MLS # 6650375
Property Type Single Family Residence
Price Type --
Easy To Show, Over 1 Acre Horse Property on this beautiful 4 bedroom, 2 bathroom single family home located in Wittmann, AZ. Comes with a Separate Fenced Pool Area to cool off in the summer heat! A Split Floor Plan 2 40 foot Cargo Containers. 2 Horse Stalls, Covered RV Parking. and a 50 ft portable round Horse Exercise Ring. Beautiful backyard with trees to provide shade perfect for a family event. Has an open garage with lots of available space to leave your vehicles in, 2 RV Hook-ups and 2 Container Storage units, Leased Solar Panels to reduce Electric Bills, and Additional Storage Shed.

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