What’s Ahead For Mortgage Rates This Week – January 30, 2017

Last week’s economic news included readings on new and existing home sales and mortgage rates. Also released were reports on new jobless claims and consumer sentiment.

New and Existing Home Sales Lower in December

According to the U.S. Commerce Department, sales of new homes fell to 536,000 sales on a seasonally-adjusted annual basis. This reading was markedly lower than the expected rate of 595,000 sales and November’s reading of 598,000 sales. Analysts said that the drop in new home sales indicated that the housing sector is still experiencing a rocky recovery. December’s reading for new home sales was 10.4 percent lower than December’s adjusted reading of 598,000 sales. December’s reading was 0.40 percent lower year-over-year.

The median sale price of new homes was $322,500 in December, which was 4.30 percent higher than in November and 7.90 percent higher than in December 2015. The dip in sales has increased inventory of available homes to a reading of 5.80 months needed to sell all new homes presently available. Real estate pros typically consider a six-month supply of homes for sale a normal inventory.

In related news, sales of pre-owned homes were also lower in December. The National Association of Realtors® reported December sales at 5.49 million on a seasonally-adjusted annual basis; this reading was lower than expectations of 5.51 million sales and November’s reading of 5.65 million sales. The slower rate of sales may signal that home prices have topped out; there is also a very low inventory of available pre-owned homes for sale as compared to demand. Sales of pre-owned homes were 2.80 percent lower than November’s reading, which was the highest rate of existing home sales since 2007. Sales of pre-owned homes were 0.70 percent higher year-over-year.

Winter weather and holidays may have contributed to lower home sales in December, but higher prices, tough mortgage requirements and a low supply of available pre-owned homes were seen as obstacles to completed home sales for December.

Mortgage Rates Mixed, New Jobless Claims Rise

Freddie Mac reported higher fixed rates for mortgages last week. The average rate for a 30-year fixed rate mortgage rose 10 basis points to 4.19 percent; the average rate for a 15-year fixed rate mortgage rose six basis points to 3.40 percent. The average rate for 5/1 adjustable rate mortgage fell by one basis point to 3.20 percent. Discount points for fixed rate and 5/1 mortgages averaged 0.40 percent.

New jobless claims exceeded expectations of 250,000 new claims with a reading of 259,000 new claims and the prior week’s reading of 237,000 new claims. Analysts said that volatility is common with new jobless claims in January. There were few layoffs reported and good news that the new jobless claims rate remained below the benchmark reading of 300,000 new claims for the 99th consecutive week. This milestone was last seen in 1970.

The four-week rolling average of new jobless claims fell by 2000 to an average of 245,900 new claims filed; this was the lowest reading since 1973.

Consumer sentiment rose to 98.5 which surpassed the expected reading of 98.2 percent and December’s reading of 98.1 percent.

Whats Ahead

Multiple readings on housing and labor related data will be released this week. Scheduled releases include pending home sales, Case-Shiller Housing Market Indices and construction spending. Reports on inflation and core inflation are due along with readings on non-farm payrolls, ADP payrolls and the national unemployment rate.

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17667 E Cindercone Road Rio Verde, AZ 85263

$1,649,000
4 Beds
3.5 Baths
3,243 SqFt
Status Active
MLS # 6713753
Property Type Single Family Residence
Price Type --
Refined bespoke luxury, this 2022 built soft contemporary designed residence is perfectly located in one of the valley's most scenic locations in the world class Trilogy community. This highly coveted Orion floor plan with rare 4th Bedroom Option and luxurious appointments is simply exquisite. With 4 BEDROOMS, 4.5 bathrooms and DEN or office AND a FLEX/MEDIA ROOM including a luxurious primary suite, there's plenty of room for everyone in the family. You'll love the soaring ceilings, and a Chef's dream kitchen with a massive center island for entertaining, high-end THERMADOR appliances and custom cabinets. The striking open floor plan includes upgraded wood flooring, custom lighting and 15ft wall of glass opening to outdoor living perfect for quiet moments of reflection or joyful enterta ining, the resort-like south facing backyard rests along a tranquil NAOS area with stunning views of Four Peaks. An expansive covered patio includes an outdoor fireplace with oversized TV & barbeque, perfect for al fresco dining or entertaining. It is an ideal spot to relax, unwind, and soak up the natural beauty that surrounds you. Don't miss this opportunity to own a truly remarkable property in the prestigious Trilogy at Verde River.

14605 S Presario Trail Phoenix, AZ 85048

$1,649,000
4 Beds
5 Baths
3,666 SqFt
Status Active
MLS # 6754083
Property Type Single Family Residence
Price Type --
Welcome to this stunning custom home in the exclusive GATED SUMMERHILL community. This beautiful 4-bedroom, 5-bathroom plus executive office home spans 3,666 square feet livable, and 5688 Under Roof! This Custom home built by Forte Homes offers luxurious living at its best! One of the newest homes built in Summerhill in 2018 includes newer components like roof, A/C units, stucco, paint, insulation, and appliances, all 2018. The property is situated on a 1.35-acre mountainside lot and provides breathtaking mountain views and high-end features. The large great room boasts stained exposed wood beams, 15-foot ceilings, and large windows showcasing stunning mountain views. The gourmet kitchen has top-of-the-line stainless steel appliances, including a Sub-zero built-in refrigerator, a Wolf gas range with double ovens, and two dishwashers. The kitchen also features a large island with double sinks, a breakfast bar with sink and chilled RO system, custom alder cabinetry, and a walk-in pantry. Dramatic entry, formal dining room, neutral flooring throughout, custom window treatments, granite counters, solid 8-foot doors, Star dual energy dual pane windows, smart home technology, and a large laundry room are just some of the upscale features. The Elegant primary suite wing features a private exit to the patio, a spa-like bath with double sinks, a huge walk-in closet, a jetted tub, and Incredible views from every window! Adjacent to the Primary is an Executive Office and Powder Room. Three secondary bedroom suites include neutral tile in common areas, carpet in bedrooms, private baths with granite and custom fixtures, and walk-in closets. The 5-car garage is a massive 1325 square feet with air conditioning, insulation, custom 10-foot doors, and built-in cabinetry, providing ample space for vehicles and storage. The backyard is ideal for entertaining and offers stunning mountain views and amazing sunsets. The expansive covered patio with paver flooring is perfect for entertaining, complete with built-in gas heaters, ceiling fans, and a pool bath. Enjoy the natural gas-heated pool and spa, surrounded by a travertine deck and multiple seating areas. It includes a custom heated pool and spa with deck jets and a spillway. The custom natural desert design landscaping, a turf side yard, and a paved driveway enhance the property's curb appeal. This home is a masterpiece, offering luxury, comfort, and breathtaking views. Don't miss the opportunity to make it yours!

5600 S Ashley Drive Chandler, AZ 85249

$1,645,000
4 Beds
4 Baths
4,031 SqFt
Status Active Under Contract
MLS # 6697520
Property Type Single Family Residence
Price Type --
Beautiful 4br+den/4ba custom home on one of the largest lots (1.25+ acres) in prestigious Circle G neighborhood that includes some of the finest homes in S. Chandler. Numerous improvements and tasteful upgrades throughout this traditional Adobe home. Parklike backyard includes basketball/pickleball court, lighted batting cage, playset, citrus grove, pond with waterfall, and mature desert landscaping throughout. Inside is a fabulous split floorplan with large primary suite with fireplace, jetted tub, and separate exit to backyard. Large office/5th bedroom with full bath off main entrance and three, large secondary bedrooms. Two bedrooms are easily converted to an in-law suite with adjoining jack-and-jill bathroom. Come see everything this wonderful home has to offer!

6601 E Lone Mountain Road Cave Creek, AZ 85331

$1,645,000
3 Beds
2.5 Baths
3,421 SqFt
Status Active
MLS # 6748204
Property Type Single Family Residence
Price Type --
The first residents took the best lots! That's what happened here. This 2.2 acre lot is elegantly elevated giving you best views you can imagine! Charming home with Burnt Adobe Style brick. Newer bathrooms and kitchen. You will love the beautiful choice of granite. Solid Wood Doors! Large master bedroom with fireplace. Heartwarming fireplace in living room where you can enjoy the tremendous views! There is another ensuite on the other side of the home. Private Pool. Four stall barn that matches the charm of the home. And a large arena and round pen, tack and hay storage! Pick up the horse trails on School House and head North to the most scenic riding you can imagine! The garage is 38Ft long with the divider wall removed for mud room. Possible Tandum 4 car garage.

6107 E Lone Mountain Road Cave Creek, AZ 85331

$1,640,000
4 Beds
4.5 Baths
3,722 SqFt
Status Active
MLS # 6742799
Property Type Single Family Residence
Price Type --
SELLERS ARE MOTIVATED - garage allowance with the right offer. Don't miss out on this rare opportunity! Are you searching for a distinctive desert oasis with limitless potential? Look no further than this breathtaking former church transformed into a custom home, nestled on over 2 acres of prime land. This charming, non-HOA home is perfect for horse owners, RVs, and outdoor enthusiasts. The main home features a modern farmhouse design with 2,974 sq ft, 3 bedrooms, and 3 full baths, including a pool bath. Highlights include a great room with 19' ceilings, white walls, soft grey tile, and hardwood floors in both the library and dining room. The kitchen boasts a large quartz countertop, a 36'' induction cooktop, rustic beam chandelier, and upgraded appliances. Updates include new windows, sliders, hot water heaters, and R/O and soft water systems. The almost 750 sq ft detached guest house has a bright, modern feel with expansive spaces, new appliances and its own driveway and yard. It offers potential rental income or makes the perfect pad for family and friends to stay. The property also features a 200 sq ft insulated workshop with A/C, a full-size hydrotherapy hot tub, and a H2X Challenger 19D Swim Spa with 30+ jets. Enjoy a new misting system on the covered patio and stunning sunsets around the firepit. With views of Black Mountain and plenty of room to expand, this property offers both space and privacy. The possibilities are truly limitless!

28413 N 59th Place Cave Creek, AZ 85331

$1,639,995
3 Beds
3.5 Baths
2,946 SqFt
Status Active
MLS # 6673429
Property Type Single Family Residence
Price Type --
Estimated completion spring of 2025. Personalize your finishes including flooring, countertops, and more. Well-appointed kitchen with stainless steel JennAir appliances. Spacious great room with 90-degree multi-slide door. The Elden's warmly inviting porch leads into a soaring foyer. The impressive great room overlooks a desirable covered patio. A cozy casual dining area complements the well-appointed kitchen featuring a large center island with breakfast bar, ample counter and cabinet space, a roomy walk-in pantry, and a butler pantry to the dining room. The serene primary bedroom suite is highlighted by a generous walk-in closet and spa-like primary bath with dual-sink vanity, large soaking tub, luxe shower with seat and drying area

30999 N 117th Drive Peoria, AZ 85383

$1,639,000
3 Beds
3.5 Baths
3,459 SqFt
Status Active Under Contract
MLS # 6727280
Property Type Single Family Residence
Price Type --
Stunning '18 Toll Brothers Costellana model nestled on a mountain view lot in Blackstone. Elegant 3546 sq.ft single story floor-plan w/ custom features to incl 17' ceilings in great room & 10' ceilings throughout, custom tile flooring, designer stacked stone & lighting. Great room w/ a modern gas fireplace, the chef's kitchen is equipped w/ Wolf Appliances, upgraded cabinetry, quartz, island, & extended kitchen bar w/ wine frig's. Formal dining, office, family room & spacious ensuite bedroom + bathroom. Master suite, walk-in closet, cabinets, dual sinks, vanity, shower & tub. BREATHTAKING Backyard w/ custom pool, large Baja step & waterfall wall, outdoor kitchen, gas firepit, Bocce crt & covered patios, prvt front courtyard, new int/ext paint, epoxy garage, custom iron front door + More

19771 E Willow Drive Queen Creek, AZ 85142

$1,625,000
5 Beds
4.5 Baths
4,002 SqFt
Status Active Under Contract
MLS # 6754539
Property Type Single Family Residence
Price Type --
Don't miss this beautiful 4,000 square foot, 5 bedroom, 4.5 bath with attached guest casita on a RARE 1 acre lot in the desirable La Jara Farms community! Backyard is a dream for sports lovers - half court basketball, 2 in-ground trampolines, putting green and 70' batting cage. Enjoy entertaining with the heated pool, spa and alumawood pergola seating area. Step inside to pure luxury! Soaring 12' ceilings in the kitchen + family room. Gourmet kitchen includes massive island, farmhouse sink, stainless appliances, double ovens, gas range and large pantry. Master bedroom includes electric fireplace and 2 walk-in closets, with one leading to laundry room. Jack & Jill for secondary beds + a bedroom ensuite and the guest casita has its own private entrance. Can't forget the oversized driveway and 4 car garage (not tandem). This home has it all, too many upgrades to list. It is a must see home!

3602 E Briarwood Terrace Phoenix, AZ 85048

$1,625,000
4 Beds
3 Baths
3,521 SqFt
Status Active Under Contract
MLS # 6746007
Property Type Single Family Residence
Price Type --
Perfectly situated on a premier waterfront lot, an oasis of elegance, tranquility and modern comfort awaits. Nestled in the community of Lakewood, this residence offers an idyllic setting. From the interior of this 4 bed, 3 bath, meticulously remodeled home, you'll enjoy uninterrupted, panoramic views of the lakes, mountains and sunsets that spread across the entire back of the home. This luxurious, 2 story home mimics the functionality of a single story and boasts a range of exquisite features designed to enhance both style and practicality. Vaulted ceilings and elongated windows portray a feeling of grandeur flooding the living space with natural light, creating a bright and inviting atmosphere. Custom beams and wood-wrapped archways add a touch of rustic elegance. The kitchen is a chef's and entertainer's delight, featuring new stainless steel appliances, expansive quartz countertops with waterfall edges, quartz wrapped range hood and backsplash and a layout that seamlessly blends culinary creativity with social gathering. The custom cabinetry in the kitchen and throughout the home offers both ample storage and sophisticated design, ensuring that every room is as practical as it is visually stunning. Each bathroom showcases unique, custom tile choices that blend perfectly with the home's aesthetic, complemented by designer lighting that illuminates the space beautifully. Every detail has been precisely crafted, with each space carefully considered to provide the ultimate in luxury living. The community boasts two stunning lakes, each with two boat docks, offering residents access to a world of aquatic adventures. Enjoy catch-and-release fishing, or take to the water in electric boats, paddle boats, kayaks, or stand-up paddleboards. Whether you're seeking relaxation or excitement, the lakes of Lakewood provide the perfect backdrop. Embrace the opportunity to become part of this vibrant neighborhood and to own a piece of paradise. Come see this beautiful, dream home today!

28602 N 58th Street Cave Creek, AZ 85331

$1,625,000
4 Beds
3.5 Baths
4,102 SqFt
Status Active
MLS # 6680685
Property Type Single Family Residence
Price Type --
Step into your own private retreat in Cave Creek! This 1+ acre property offers incredible sunset views that you need to experience in person to truly appreciate. With over 4,000 sq. ft. of single-level living space, this home has it all—an expansive bonus/game room perfect for hosting friends and family, and a cozy living area complete with a stunning stone fireplace. The climate-controlled, oversized RV garage is a rare find, offering more than enough space for all your toys. Step outside into a resort-style backyard with a sparkling pool, spa, and lush desert landscaping that feels like a vacation every day. Minutes from shopping, dining, and recreation, yet offering ultimate privacy. This is a home you *must* see to believe—plan a tour today and experience Cave Creek living at its finest!

3153 E Sierra Vista Drive Phoenix, AZ 85016

$1,625,000
3 Beds
3.5 Baths
2,871 SqFt
Status Active Under Contract
MLS # 6708504
Property Type Single Family Residence
Price Type --
Experience the peace & tranquility of the highly sought-after guard-gated Biltmore Mountain/Hillside Villas community. This SINGLE-LEVEL, detached home boasts a no-step layout, offering convenience & accessibility. Each of the 3 bedrooms features an ensuite bathroom & a walk-in closet. A versatile bonus room with mountain views can serve as a home office, gym, or formal dining area. The spacious and bright owner's suite includes a separate tub and shower, dual vanities, & an expansive walk-in closet. Enjoy the private backyard with its southern views of the Wrigley Mansion & Phoenix skyline. The large covered patio is perfect for outdoor entertaining & the swimming pool with a waterfall fountain adds a touch of luxury. The low-maintenance landscaping ensures you can relax & enjoy.

23032 N 38th Place Phoenix, AZ 85050

$1,625,000
6 Beds
4.5 Baths
4,599 SqFt
Status Active
MLS # 6727040
Property Type Single Family Residence
Price Type --
One of the largest lots in the coveted Aviano community, this updated north/south facing six-bedroom home with office and fully finished basement is located minutes from shopping and schools. This home is perfect for work-from-home families who want lots of space to spread out. Large backyard oasis includes BBQ area, Pebble-tech pool, hot-tub and gas fireplace. Plenty of lush landscaping and grass on both sides gives this over-sized lot a large, open, feeling and backs up to a designated open area with beautiful sunset views. With no neighbors directly behind you plus an 8' backyard wall will ensure plenty of privacy while poolside and entertaining. Master bedroom and bath have been remodeled and showcase a lit stonewall, walk-in shower with porcelain tile throughout. The chef's kitchen is a masterpiece with warm cabinetry, exquisite granite countertops, high-end appliances, and an oversized island made for entertaining. With AC units only 3 years old, your summers will be refreshingly cool in this opulent sanctuary.

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