What’s Ahead For Mortgage Rates This Week – January 2, 2017

Last week’s economic reports were in short supply due to the Christmas holiday. Events reported included Case-Shiller home price indices, pending home sales and weekly readings on mortgage rates and new jobless claims. Consumer confidence was also released.

CaseShiller Readings Indicate No Slowdown in Home Price Gains

Case-Shiller’s October readings for its home price indices showed continued growth in home prices. In spite of rising home prices and mortgage rates, high demand for homes and slim supplies of homes for sale continued to fuel higher home prices.

According to Case-Shiller’s national home price index for October, home prices rose 5.60 percent on an annual basis as compared to September’s reading of 5.40 percent. The 20-city home price index rose to 5.10 percent from September’s reading of 5.00 percent. Case-Shiller’s 10-city index also gained 0.10 percent in October with a reading of 4.30 percent year-over-year.

Seattle, Washington, Portland, Oregon and Denver, Colorado had the highest year-over-year home price gains in October with readings of 10.70, 10.30 and 8.30 percent respectively. David M. Blitzer, Managing Director and Chairman of the S&P Indices Committee, said that “Home prices and the economy are both enjoying robust numbers,” but he also cautioned that rising mortgage rates and home prices growing faster than wages continue to pose obstacles for some home buyers. The Federal Reserve is expected to raise its federal funds rate in 2017, which is expected to prompt rising mortgage rates.

Mortgage Rates Mixed, Pending Home Sales Fall

Pending home sales fell 2.50 percent in November. Analysts said that post-election reaction helped to drive mortgage rates higher, which made homes less affordable for first-time and moderate-income buyers; Sellers and buyers may have postponed decisions to sell or buy as they waited for volatile post-election responses to ease.

According to the National Association of Realtors®, pending home sales fell to their lowest level in almost a year with an index reading of 107.30 in November. September’s reading was 110.00. The holiday season and rising mortgage rates were seen as contributing to fewer pending home sales.

Freddie Mac reported the ninth consecutive week that fixed rate mortgages rose. In the final mortgage rates survey for 2016, the average rate for a 30-year mortgage rose two basis points to 4.32 percent; the average rate for a 15-year fixed rate mortgage was three basis points higher at 3.55 percent. 5/1 adjustable rate mortgage rates averaged 3.30 percent, which was two basis points lower than the prior week. Discount points averaged 0.50 percent for all three mortgage types.

New jobless claims were lower last week with a reading of 265,000 new claims filed. Analysts had expected 270,000 new claims filed based on the prior week’s reading of 275,000 new claims filed.

In spite of rising home prices and mortgage rates, consumer sentiment was higher than expected in December with a reading of 113.70 as compared to expectations of 110.00 and November’s reading of 109.40.

Whats Ahead

Next week’s scheduled economic reports include Labor Department releases on Non-Farm Payrolls, and the national unemployment rate. ADP payrolls and weekly readings on mortgage rates and new jobless claims will also be released. Financial markets are closed today in observance of New Year’s Day.

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683 W Princeton Avenue Gilbert, AZ 85233

$588,000
4 Beds
3 Baths
2,416 SqFt
Status Active
MLS # 6779854
Property Type Single Family Residence
Price Type --
Prepare to be amazed by this magnificent two-story gem in the desirable Community of Silverhawke! This beauty displays lush greenery, a mature shade tree, a 3-car garage, & an inviting courtyard. You'll love the immaculate interior, boasting spacious living areas perfect for welcoming & entertaining. The home exudes charm with its vaulted ceilings, chic light fixtures, & tile flooring. The impeccable kitchen is fully equipped with granite counters, a mosaic tile backsplash, recessed lighting, a pantry, & white cabinetry w/crown molding. Main suite is located upstairs & adorned with soft carpeting, a full ensuite w/a sliding barn door, & a generous walk-in closet. The home's elegance extends outdoors to the private backyard with a covered patio, fragrant citrus trees, & pavers. Act now! Vacant and easy to show. Appliances included. Additional incentives available.

4129 E Nighthawk Way Phoenix, AZ 85048

$588,000
4 Beds
2.5 Baths
2,782 SqFt
Status Active
MLS # 6782855
Property Type Single Family Residence
Price Type --
Great bones on this home that is priced to sell. Owner bought this in 2010 and is ready to sell quick! Huge primary bedroom on MAIN FLOOR, 3 car garage, pebble-tec pool w/ pop up heads and heated spa! Don't forget the 3 car garage! Great area with NO HOA makes this a real find. Former rental that can be cleaned up w/ paint/carpet, etc (everything works just fine in the home) or fully remodeled and flipped.

375 E Citrus Hollow Way Queen Creek, AZ 85140

$587,979
2 Beds
2.5 Baths
1,678 SqFt
Status Active
MLS # 6629644
Property Type Townhouse
Price Type --
This brand new Valletta model is move-in ready! It features a spacious layout with plenty of natural light. The kitchen is fully equipped with stainless steel appliances and granite countertops. It has a gourmet kitchen, gas cooktop and will be the perfect place to entertain your guests. Both bathrooms are highly upgraded with tile surround and upgraded fixtures. The resort collection at Encanterra offers you the perfect balance if you are a seasonal owner or full time. Book your tour today and start living the good life at Encanterra now!

3109 E Larkspur Drive Phoenix, AZ 85032

$587,700
4 Beds
2 Baths
1,550 SqFt
Status Active
MLS # 6747596
Property Type Single Family Residence
Price Type --
Discover the epitome of versatile luxury with this stunning property, ideal for use as an income generating investment, or a personal residence. Imagine unwinding by your heated pool, grilling up a feast under your covered patio or perfecting your putt on your very own backyard green. This exceptional & fully renovated home boasts 4 spacious bedrooms, 2 bathrooms, & a host of premium features including granite countertops, stylish laminate wood flooring, an upgraded garage floor & ceiling fans in every room! Enjoy the added benefits of solar panels on a new roof, and the convenience of an option to purchase fully furnished for a seamless transition. With no HOA & easy access to freeways, plus a mere 15-minute drive to PHX Airport, this property offers both luxury and convenience.

7314 W Surrey Avenue Peoria, AZ 85381

$587,000
5 Beds
3 Baths
2,510 SqFt
Status Active
MLS # 6719780
Property Type Single Family Residence
Price Type --
** FIRST LEVEL MAIN BEDROOM / BATH DOWNSTAIRS* also second bedroom / bath down stairs ** SWEETWATER RIDGE is where this gem lies. Meticulously cared for the past 13 years. Kitchen has been fully updated and remodeled from the original look. Newer paint throughout the home inside and out. Downstairs primary bath was remodeled in 2015 with soaking tub and separate shower. Lush carpet. Plank tile. *OVERSIZED BEDROOM UPSTAIRS with TWO CLOSETS. Outside features include RV GATE with concrete slab in front and back yard. Irrigation system for grass and plants in front and back yard. Back patio and aluminum pergola extend from one end of the home to the other end. Sunscreens throughout. Two car garage with enclosed workshop/storage. Near ASU WEST, AZ Christian University , Mid West University.

8776 W Peppertree Lane Glendale, AZ 85305

$586,999
4 Beds
3.5 Baths
3,126 SqFt
Status Active
MLS # 6659040
Property Type Single Family Residence
Price Type --
Newley remodeled home with great curb appeal with a 3 car garage, Lennar home with a NEXT GEN Suite! - Ideal for parents, adult children, home office with reception or as potential rental income for you! Next-Gen Suite has a family room, kitchenette, bedroom, shower and much more! There is a separate entrance from the side of the home into the suite as well as one from inside the main home that allows you to check in on your guests or loved ones easily. This home has two fridges that both convey in the sale, the main home has a spacious open floor plan, eat -in kitchen w/breakfast bar seating and spacious bedrooms. Large back yard! Short distance to schools, Westgate Entertainment District, sports venues, state farm stadium and the Loop 101. ALSO FOR RENT!

2831 S Perkinsville Road Williams, AZ 86046

$586,900
3 Beds
2 Baths
2,198 SqFt
Status Active
MLS # 6676334
Property Type Single Family Residence
Price Type --

17751 W Bloomfield Road Surprise, AZ 85388

$586,500
4 Beds
3 Baths
3,110 SqFt
Status Active
MLS # 6719168
Property Type Single Family Residence
Price Type --
A beautiful 4 bed, 3 bath residence in Sarah Ann Ranch is now on the market! Nestled on a premium corner lot & featuring great curb appeal, a low-care landscape, and 4 car tandem garage! Discover spacious dining & living areas w/soaring ceilings, elegant wood-look flooring, soft carpet in all the right places, modern light fixtures, and custom palette throughout. The gorgeous kitchen is equipped w/everything you'll need for home cooking, white cabinetry w/crown moulding, a pantry, stainless steel appliances, and an island complete w/a breakfast bar. The primary bedroom boasts a walk-in closet and a full ensuite w/dual sinks for added comfort. You'll also find a cozy den ideal for an office or reading nook. Finally, the wonderful backyard includes a covered patio, attached pergola, extended paver seating area, fire pit, artificial turf, and a sparkling blue pool perfect for the warm summer days! What are you waiting for? Act now!

12737 W Auburn Drive Peoria, AZ 85383

$586,500
2 Beds
2 Baths
1,798 SqFt
Status Active
MLS # 6729974
Property Type Single Family Residence
Price Type --
Beautiful gently lived in 2-bedroom plus den property. Check out & fall in love with the large great room featuring tile flooring and plantation shutters. Spotless kitchen displays mosaic tile backsplash, recessed & pendant lighting, staggered cabinets & cupboards with crown molding ,stainless steel appliances, granite counters, and equipped with a roomy breakfast bar. Generous laundry room with plenty of cabinets and desk area .Make the sizable den a reading nook or bar area. In the bright primary bedroom, you will find plush carpet, a private bathroom with dual sinks, an enclosed glass shower, and a walk-in closet. Entertainers delight in the spacious backyard provides a covered patio, fire pit, and a built-in BBQ and hot tub. Shea Xero 20 year pre paid solar. Energy savings!!

1750 W Dion Drive Phoenix, AZ 85086

$585,900
2 Beds
2 Baths
2,080 SqFt
Status Active
MLS # 6750657
Property Type Single Family Residence
Price Type --
Sharp 2 bedroom with a den, You will love the Beautiful airy feel of this home. The interior and exterior where painted in 2021 and new upgraded porcelain tile throughout. Hunter Douglas blinds. Spacious kitchen offers a ton of counter space for entertaining. Primary suite is Huge with beautiful appointments in the bathroom. Den offers double french doors for privacy and still an open feel. Culligan soft water system and R/O stay with the home. Come enjoy the Beautiful back yard that over looks the golf course and Mountain views. Built in BBQ and fire pit perfect for the fall evenings

16836 E Mirage Crossing Court Fountain Hills, AZ 85268

$585,900
2 Beds
2 Baths
1,076 SqFt
Status Active
MLS # 6696664
Property Type Twin Home
Price Type --
: Exceptional Renovated 2-bedroom, 2- bathroom twin home in Fountain Hills, AZ, with its modern allure. The sunlit Arizona room seamlessly connects to a spacious covered patio, complete with a built-in-BBQ, perfect for entertaining, Your private outdoor oasis features a spool and putting green, adding an element of relaxation with meticulous attention to details, this residence offers an ideal winter retreat or Airbnb. Experience Fountain Hills and Arizona Sunsets!!

3149 W Golden Lane Chandler, AZ 85226

$585,900
4 Beds
2.5 Baths
2,231 SqFt
Status Active
MLS # 6740031
Property Type Single Family Residence
Price Type --
This beautifully updated 4-bedroom, 2.5-bath home offers modern amenities and spacious living. The primary bedroom is conveniently located on the main floor, providing ease and privacy. The kitchen is a chef's dream, featuring a large island, stainless steel appliances, including a microwave, range, and dishwasher, and seamlessly opens up to a generous living space, perfect for entertaining. The fully finished basement expands the living area with a large bonus room, an additional kitchen with refrigerator, and three more bedrooms, making it ideal for guests, extended family, or potential rental income. Washer/dryer combo units for main level and basement. This home combines comfort, functionality, and style in every detail.

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