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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275 E Bracciano Avenue San Tan Valley, AZ 85140

$1,350,000
2 Beds
2.5 Baths
2,343 SqFt
Status Active
MLS # 6754422
Property Type Single Family Residence
Price Type --
Stunning golf course Chroma model w/ fabulous upgrades now available in Encanterra Golf & Country Club! You'll appreciate the pride of ownership that matches one of the best unobstructed views in the community featuring greens, water & mountains. Gourmet kitchen showcases shaker cabinets to the ceiling w/ glass displays, pull-out drawers & soft-close features. Built for entertaining - island w/ gas cooktop, JennAir refrigerator & beverage center. Wood-like tile throughout the house with carpet in the bedrooms. Private den with French doors. Bonus room that can easily become a third sleeping area. Captivating primary suite with ensuite featuring walk-in shower & double vanities w/custom storage. Separated second bedroom & bathroom. Plantation shutters. Incredible laundry room & extra half- bath. These are just some of the timeless interior features of this home. With an oversized garage providing room for storage or a golf cart, this property is as practical as it is beautiful. EV charging outlet. Smart home. As if this wasn't enough, breathtaking views take center stage thanks to the expansive rolling wall of glass. Outdoor gas BBQ and extended travertine paved patio. Surround sound in & outside. This lot is unusually large for the neighborhood. Must see to truly appreciate the friendly & upscale resort-lifestyle of Encanterra! All-age community! Arizona living is waiting for you!

22934 E Russet Road Queen Creek, AZ 85142

$1,350,000
4 Beds
3.5 Baths
4,097 SqFt
Status Active Under Contract
MLS # 6746804
Property Type Single Family Residence
Price Type --
This property has been tastefully designed with stunning finishes inside and out. The wide open floorplan is complete with 12' ceilings, huge great room and separate teen room. This chef's kitchen showcases a huge island with breakfast bar, granite counters, stainless steel appliances, backsplash, ''Fairfield'' staggered cabinets, and butlers pantry. The 4 car garage w separate AC & RV gates on either side of the property so there is room for all of your toys! The sellers have spared no expense on this gorgeous home.This amazing yard is complete with extended patio cover, large temperature controlled 9' deep pool, jacuzzi and grotto w/ diving rock, wrap around patio, BBQ station, fire pit & outside shower! Electric blinds, plantation shutters, trim lights front and back and so much more!

45020 N 18th Street New River, AZ 85087

$1,350,000
3 Beds
2.5 Baths
2,508 SqFt
Status Active
MLS # 6743292
Property Type Single Family Residence
Price Type --
OVER 9 ACRES of privacy and more! This beautiful hilltop property has panoramic views of Tonto National Forest. New flooring throughout. Steel roof. Whole house GENERAC generator. 2 wells. 4000 gal of freshwater storage. Dual AC units. Mech sunshields. Fireplace in primary bedroom and family room, fresh paint. Above ground pool. Workshop, extra storage in laundry room and much, much more. Energy efficient 12'' block walls. Existing pen for your animals. Full length covered patio - perfect to for coffee and a sunrise. This property is splitable with endless possibilities: build several homes, horse arena/barn or just have a big buffer zone. Ride your horses or ATVS out in Tonto National Forest which is a few blocks away. Less than 30 minutes from TSMC and shopping and freeway

376 N Iron Horse Drive Coolidge, AZ 85128

$1,350,000
6 Beds
4.5 Baths
3,121 SqFt
Status Active
MLS # 6751108
Property Type Single Family Residence
Price Type --
TWO PARCELS are included in the sale for a total of 5 acres! Stunning 5 bd/4 bath rustic home situated on a 2.5 acre lot featuring resort style pool and a 1 bd Casita with kitchen. Formal dining room, gourmet chef's kitchen, custom cabinetry, broken edge granite counters, center island, breakfast bar, pantry, SS appliances, & French doors to the patio. Generous size bedrooms, ample closets & upscale travertine baths. Oversized doors, 12' ceilings, travertine floors, grid ceiling in the den, hand hewn beams throughout. The primary bedroom offers patio access, plush carpet, & private en suite w/dual sinks. House includes 8 insulated garage spaces. Enjoy the backyard covered patio, lush green grass, outdoor kitchen & exquisite pool. Horse shades, 24X40 hay barn, 2000 sq ft non-climbable horse fence. Surrounded by fantastic mountain views!

7275 N Scottsdale Road Unit 1013 Paradise Valley, AZ 85253

$1,350,000
4 Beds
3.5 Baths
3,047 SqFt
Status Active Under Contract
MLS # 6745657
Property Type Townhouse
Price Type --
Discover the epitome of the luxury lifestyle Paradise Valley has to offer. Exquisite 4-bedroom townhome, 3.5 bathrooms, and spanning three stories overlooking the alluring pristine pool. This home has been meticulously updated with new flooring, fresh paint, and new HVAC systems. Enjoy the convenience of a personal elevator and a gourmet kitchen equipped with Viking appliances, and a huge island/breakfast bar. The formal dining room, along with separate living and family rooms, inviting fireplaces, soaring 9ft ceilings, ample space for entertaining and relaxation. Outdoor living is elevated with 3 covered & 2 Juliet balconies, and a private courtyard perfect for enjoying the beautiful surroundings. The first-floor suite with separate entrance is ideal for guests. The property features surround sound throughout, a security system, pre-plumbed central vacuum, and a water softener. The 2-car garage is enhanced with an extended side, built-in cabinets, and an epoxy floor. A gated private entrance courtyard is on the ground level. The original owners have lightly and occasionally used this townhome over the years during their visits to Arizona. Combining high-end finishes, ample storage, and a prime location, this residence exemplifies the best of comfort and sophistication. You will instantly fall in love with this Poolside Brownstone. This gated coveted well-maintained community of Artesia offers picturesque views and a serene atmosphere. It features a heated pool, spa, 5-acre private grassy area, gazebos, and gas grills. Here is your opportunity! Live in this amazing Paradise Valley/Scottsdale residence surrounded by its luxurious amenities and vibrant lifestyle. A premier destination for tourists and residents alike. The city's offerings cater to diverse tastes, from high-end resorts and championship golf courses to a rich culinary scene featuring everything from casual dining to gourmet experiences. An abundance of premier shopping, luxury brands, popular retail stores, and boutiques. World-Renowned entertainment, events, festivals, and all kinds of activities. And so much more that you will feel you are on a permanent vacation.

17370 W Wildwood Street Surprise, AZ 85388

$1,350,000
3 Beds
3 Baths
2,813 SqFt
Status Active
MLS # 6672082
Property Type Single Family Residence
Price Type --
One of the BEST PREMIUM GOLF COURSE LOT, This full 3 bedroom plus office Home is ready to move-in. Home has $550k+ in upgrades, Home has a Wine Closet, 12'' Patio Doors full Landscape to the Max, Includes all Appliances. Enjoy Resort Style Living at it's Finest at Sterling Grove Golf & Country Club in the 55+ Section of the Community. Looking for a Home that has everything with Gorgeous Mountain Views, Amazing Sunsets, Beautiful Golf Greens, A great custom Heated Pool and Spa to enjoy year round., Garage has EV outlet, epoxy floors, wood floors entire house

18223 W Rancho Court Litchfield Park, AZ 85340

$1,350,000
5 Beds
3.5 Baths
3,244 SqFt
Status Active
MLS # 6740239
Property Type Single Family Residence
Price Type --
Stunning Home with Modern Luxuries and Entertainer's Dream Spaces! Discover this exquisite 5 bedroom, 3.5 bath home nestled in the beautiful gated community of Russell Ranch, on a premium cul-de-sac lot. The property features an oversized 3 car garage, perfect for all your storage needs. Enjoy the flexibility of RV or casita potential with pre-installed plumbing. Inside, custom shutters adorn every window, enhancing both privacy and elegance. The expansive great room offers a perfect setting for gatherings and holiday celebrations. The home also boasts impressive front & back patios, ideal for entertaining or simply relaxing. Front & back landscape lighting, with customizable color options, adds a touch of sophistication to your outdoor spaces. Don't miss out on this exceptional property.

1113 S Cypress Circle Payson, AZ 85541

$1,350,000
3 Beds
4 Baths
4,055 SqFt
Status Active
MLS # 6706097
Property Type Single Family Residence
Price Type --
Spectacular Quality! Steel structure & solid Alder doors throughout. Purple Mountains Majesty! Views! Sip your coffee admiring the Mogollon Rim. Conveniently located on a hilltop minutes away from downtown Payson, shopping & restaurants. Step through the door into vaulted, beamed ceilings with a wide staircase & custom railing. Family Room, Dining Room & Patio flow together creating a relaxed entertaining space. Main Suite dominates the 2nd story with a private loft, spa bathroom (including jacuzzi tub, snail shower, private laundry & bidet), fireplace, extended custom closet & huge deck. Top of the line, stainless steel appliances in this chef's kitchen where the sink window overlooks the vista, walk-in pantry and laundry room are steps away. Solid wood, Alder cabinetry throughout All walls are metal 2x4 & property framing is steel beams. Property has fire suppression system. Tile roof. Quality! The lowest level boasts 2 guest rooms with ensuite baths. LL living room includes a bar with a beer tap, wine cellar, refrigerator, ice maker, dishwasher, sink, surround sound & fireplace. Don't forget the gun closet & the bonus room! Step onto the wrap around patio and you are among the trees & views. Can you smell that fresh, pine air? Property sides to National Forest. Toys? Bring them! There is plenty of room in the 5 car garage. Storage cabinets & work bench flank the walls making an efficient space. 220 outlets in the garage. RV Parking on the side slab with electrical plug-in. Large storage room accessed from lower level patio. Come see it all!

11519 E Blue Wash Road Cave Creek, AZ 85331

$1,350,000
3 Beds
2.5 Baths
2,655 SqFt
Status Active Under Contract
MLS # 6612853
Property Type Single Family Residence
Price Type --
Heavenly views and a custom home in Tonto Hills surrounded by the National Forest, direct views of Mighty Four Peaks, Weavers Needle and beyond. Intelligent floor plan with 3 bedrooms and 3 baths, formal dining and great room that opens to the picturesque patios. Detached horse stable has electricity and could be easily converted to a casita. Rear patios offer the perfect shape and ideal location/site for a negative edge pool, see photos of renderings for a virtual pool. The views and privacy here are unrivaled.

6235 E Larkspur Drive Scottsdale, AZ 85254

$1,350,000
3 Beds
2 Baths
2,528 SqFt
Status Active
MLS # 6734145
Property Type Single Family Residence
Price Type --
NO HOA - Welcome HOME to your private oasis in the coveted 85254 zip code. Situated on over half an acre, this meticulously updated property offers an abundance of amenities. Step into elegance with this remodeled home featuring an open concept design that seamlessly blends indoor and outdoor living. Enjoy the warmth of plank tile flooring in the spacious living and family rooms, complete with a cozy fireplace. The upgraded kitchen boasts stainless steel appliances & an oversized butcherblock island with sleek finishes. Overlook your personal paradise through expansive kitchen window to see sprawling landscape of mature trees & a vast park-like yard, complemented by a stunning PebbleTec diving pool and a charming gazebo (with misting system). Kids will revel in their own wonderland with a great lighted climbing tree & jungle gym offering endless joy and laughter from morning to night. For the adventurous adults, the property features a generously sized RV gate with 30amp power on one side & another RV gate ideal for a boat or trailer on the opposite side. Additional 2 car detached garage with workshop. Conveniently located near Kierland Commons & Scottsdale Quarter, this exceptional home caters to every family member's desires. Don't miss this opportunity to own a slice of Scottsdale paradise!

1314 E Mckellips Boulevard Apache Junction, AZ 85119

$1,350,000
5 Beds
4.5 Baths
6,336 SqFt
Status Active
MLS # 6603009
Property Type Single Family Residence
Price Type --
Boasting a sprawling 6,000+ square foot layout, this property perfectly marries luxury with functionality. Nestled in a picturesque location, it offers breathtaking of views the Superstition Mountains to the east and the Tonto National Forest to the North, providing an unparalleled blend of natural beauty and refined living. The main portion of the house features 3 bedrooms, 2.5 baths, a den, and spacious living areas, including an impressive Chef's Kitchen that provides ample room for comfortable living. The property's versatility is further enhanced by a second wing or multi-generational space with 2 more bedrooms/baths, ideal for accommodating extended family or offering extra living space for guests. The private 10-seat movie theater is a standout feature, perfect for entertaining. Additionally, the six-car garage, equipped with 50 cabinets, along with abundant storage space, provides practical solutions for homeowners with multiple vehicles or extensive storage needs. The outdoor amenities, such as the expansive paver back patio, RV gate, and ride-in/ride-out equestrian trails, make this property perfect for enjoying the area's natural beauty and engaging in outdoor activities like horseback riding and ATV riding. Situated in unincorporated Pinal County, WITH NO HOA, on an acre and a quarter, this single-story home offers a rare combination of luxury, space, and functionality in a breathtaking location, making it an exceptionally desirable property.

5339 N Sahuaro Canyon Lane Tucson, AZ 85749

$1,350,000
4 Beds
3 Baths
3,670 SqFt
Status Active Under Contract
MLS # 6733071
Property Type Single Family Residence
Price Type --
Nestled in the prestigious Tanque Verde Valley, this extraordinary home offers a harmonious blend of luxury, comfort & natural beauty.Surrounded by an abundance of towering saguaro cacti and framed by breathtaking multiple mountain views, a sanctuary of serenity & sophistication. From its elegant design to its premium amenities, every aspect of this property has been meticulously crafted to provide an unparrelleled living experience. Arrive to stricking metal front door welcomes you into a world of tranquility. Step inside and be captivated by the scenic vistas that greet you from every window, seemlessly blending the indoors with the magnificient outdoors. New HVAC 2022, New Windows 2019, New Water Softner, Water Filter, Solar for pool, new pool heater added 2019. The outdoor oasis is the luxurious pool area.Dive into sparkling pool complete with a slide, spa and rock formation, all heated by efficient solar power. The wrap around covered patio offers perfect space for entertaining, with city lights and mountain views. Family rm is located off kitchen with f/p. Chef's Kitchen with center island, breakfast bar & breakfast nook. Dining room windows frame city lights. Primary suite with gas f/p, patio, primary bath with jetted tub, custom closet, glass block shower. Living room with stacked stone f/p, vigas, corbels & wood beams. Oversized secondary bdrms with jack/jill bath. 3rd bath with jetted tub. Whole house water filtration. A WOW home!!!

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