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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22448 N 77th Way Scottsdale, AZ 85255

$1,350,000
5 Beds
3 Baths
3,722 SqFt
Status Active
MLS # 6634506
Property Type Single Family Residence
Price Type --
WELCOME HOME TO THIS STUNNING IMMACULATE HOME IN SONORAN HILLS! THIS AMAZING HOME SITS ON A PREMIUM LOT BACKING TO NATURAL OPEN SPACE SHOWCASING THE BEAUTY OF THE SONORAN DESERT. ENTER THROUGH THE GATED PRIVATE COURTYARD WITH 5 SPACIOUS BEDROOMS, 3 BATHROOMS. OVERSIZED WINDOWS, HIGH CEILINGS LEND A VERY OPEN AND SPACIOUS ATMOSPHERE. THE BACKYARD IS GREAT FOR ENTERTAINING! HEATED POOL WITH WATERFALL. BBQ AREA. GOURMET KITCHEN FEATURES ISLAND WITH GAS COOKTOP, GRANITE COUNTERS, STAINLESS STEEL DOUBLE OVENS. THE MASTER SUITE IS DESIGNED WITH R&R IN MIND. A MUST SEE! FURNISHINGS AVAILABLE FOR SALE. HAVE A LOOK AT THE RENDERING PROVIDED TO MAXIMIZE THE OUTDOOR SPACE. THE FIFTH BEDROOM COULD BE CONVERTED TO A 3RD GARAGE.

1555 S Mullen Way Prescott, AZ 86303

$1,350,000
5 Beds
3 Baths
3,879 SqFt
Status Active Under Contract
MLS # 6683350
Property Type Single Family Residence
Price Type --
This could be the best view in all of Prescott* Spectacular mountain, forest and city light views from the expansive new deck* This amazing home features 5 bedrooms + den, 3 bathrooms* Home was designed as a single level 3 bedroom, 2 bath great room home with an attached (separate entrance) 3 bedroom 1 bath home downstairs with kitchen & Murphy bed in living room. Perfect for a large family, multi-generational living or vacation rental. No HOA. Almost 2 private hillside acres with countless pine trees. Vaulted ceilings & hardwood floors throughout great room. Bright open kitchen with built-in Sub-Zero refrigerator, slab granite countertops & custom cabinets. Primary suite has two walk-in closets, fireplace, deck access with world class views. Oversized 3-car garage measuring 1057 sqft. Outside there's a custom fire pit with water feature. Walking path to your mountaintop bocce ball court overlooking the city. Come and take a look at this special Mountain retreat, you will be amazed!!! **Owned Propane tank included**

9255 W Buckskin Trail Peoria, AZ 85383

$1,350,000
4 Beds
3.5 Baths
4,089 SqFt
Status Active
MLS # 6708890
Property Type Single Family Residence
Price Type --
Welcome to your custom retreat on 1.2 acres in Peoria, ideally located near Lake Pleasant and featuring an impressive 1900 SF RV/Boat Garage. This home offers 4 bedrooms and 3.5 bathrooms, providing ample room for your multi-generations. The gourmet kitchen is a chef's delight, equipped with high-end appliances and finishes, and flows seamlessly into a great room with a breakfast bar, cozy breakfast nook, and formal dining area. Entertain effortlessly in the indoor/outdoor living spaces, which include a putting green, basketball hoop, covered patio, BBQ area, spa, and a sparkling pool that invites relaxation and enjoyment. The spacious layout also features a large workout room with an adjoining steam room, perfect for maintaining your fitness routine. For those who need extra storage or workspace, the property includes a 1900 SF detached RV garage with a large garage doors, one for your RV and the other to store your beautiful boat to take to Lake Pleasant. This garage has ample storage, a workshop, and can accommodate up to 4 additional cars, making it ideal for car collectors or hobbyists. Don't miss the opportunity to own this exceptional property that combines luxury, functionality, and ample space for all your needs.

22633 N Clubhouse Way Scottsdale, AZ 85255

$1,350,000
3 Beds
2 Baths
2,582 SqFt
Status Active
MLS # 6627247
Property Type Single Family Residence
Price Type --
This significant golf property located in the highly desirable Pinnacle Peak Country Club in North Scottsdale overlooks the 11th fairway with a spectacular view of Pinnacle Peak. The property is ideal for those looking for an easy-care full-time residence or a lock-and-leave vacation home. All on one level this open flowing floor plan has been updated with new paint, new tile and low-pile carpet floors, kitchen and bath remodels and much more. Using today's modern finishes, this discerning home imparts the move-in-ready aspect. The home is entered from a stone pavered walk-way with room for front patio seating. Through the double door steel framed glass doors, the great room impresses with a vaulted beamed ceiling, iron chandelier, floor to ceiling tiled fireplace, wet bar, and glass sliders that lead to the patio. To the south the chef's kitchen is fully equipped with new granite countertops and appliances, a spacious island with a waterfall side, pendant lights and bar seating. The adjacent casual dining area extends convenience and outdoor access. The serene primary suite, in the North side of the home, features a double door entry, sitting space and patio access. Enjoy the ensuite bath with new double sink vanity, walk-in shower with floor to ceiling tile surround and a walk-in closet. For guests the sizeable second bedroom ensuite opens to the guest bath with tub and shower combination, also opening to the hall. The den or office, off the great room, has a double barn door entry and can easily be used as a third bedroom. The outdoor patio is delightful with views of the golf course and the actual Pinnacle Peak. The vaulted with beams covered patio space mimics the design of the great room inside. An outdoor fireplace, dining ramada, and beautiful mature desert landscape, including citrus trees creates the sought after outdoor Arizona casual lifestyle. Overall, this updated golf property is an excellent opportunity to own a prime location in North Scottsdale's Pinnacle Peak Country Club.

3080 W Blazingstar Road Show Low, AZ 85901

$1,350,000
4 Beds
3 Baths
2,315 SqFt
Status Active
MLS # 6749349
Property Type Single Family Residence
Price Type --
Nestled on over an acre, this gorgeous home sits on a premium gently sloping lot on the 3rd fairway of the Torreon Tower Golf Course. This single story home has an open plan with soaring ceilings and plenty of indoor and outdoor space for entertaining and relaxing alike. The chef's kitchen features Frigidaire Professional stainless steel appliances including a 5 burner gas range & built-in microwave. There is ample seating along the Quartzite center island which opens to the great room with its stylish stacked stone fireplace, vaulted tongue & groove ceilings, & large windows offering tranquil views of the majestic pines. The spacious outdoor deck has a comfortable seating area and dining area so that you can enjoy the beautiful weather and pines from the comfort of your own backyard. This home is centrally located less than half-a-mile from the Torreon family center, which has pickleball courts, basketball courts, a playground, & a catch-and-release pond, etc. The Torreon Clubhouse has a restaurant, fitness center, heated swimming pool, spa, ballroom and more. There is something fun for everyone to enjoy in Torreon.

33023 N 53rd Way Cave Creek, AZ 85331

$1,350,000
4 Beds
3.5 Baths
4,281 SqFt
Status Active
MLS # 6745271
Property Type Single Family Residence
Price Type --
Luxury home with 75K in upgrades on a 1/2 acre lot in a gated community! Ideal floor with 2 master suites. The gourmet kitchen is a chef's delight with a spacious island, subzero refrigerator, Dacor dishwasher, walk-in pantry, & a gas cook top. The primary master suite in the back of the home boasts a new custom walk-in closet, & a lavish bath w/ a soaking tub, walk-in shower, & dual vanities. There is a private patio where you can overlook the green grass. Special features include Leviton LED Customizable Lighting & solid core doors. The second master suite in the front of the home provides ultimate privacy with doors to the custom pool/spa with waterfalls. The backyard oasis is perfect for entertaining. Swim, play lawn games, barbecue & enjoy the fire. 4-car garage for car enthusiasts!

25314 S 194th Street Queen Creek, AZ 85142

$1,350,000
5 Beds
4.5 Baths
3,700 SqFt
Status Active
MLS # 6710317
Property Type Single Family Residence
Price Type --
Welcome to your new HOME - an exquisite property situated on a sprawling 1+ acre lot. This move-in-ready home boasts 3,700 sqft of luxurious living space on a single level, featuring 5 spacious bedrooms & 4.5 baths. Experience the grandeur of high ceilings & an open floor plan, complemented by a gas fireplace & wide windows in the family room. The gourmet kitchen includes all stainless steel appliances, a double wall oven, a huge quartz kitchen island w/ a breakfast bar & a walk-in pantry. The oversized master bedroom offers a huge walk-in closet, a full master bath w/ a separate shower/tub, a private toilet room & double sinks. The property also features a 1,200 sqft RV garage w/ AC - designed to accommodate business use, complete w/ a 1/2 bath, double-sided entry, 6-inch concrete pour for heavy vehicles & RV hookups for water, electric & sewer. Animal lovers will be thrilled by the unique animal privileges this property offers, allowing you to keep an array of animals such as horses, goats and chickens. Centrally located near Newell Barney Jr High, major equestrian centers, entertainment venues, Queen Creek Marketplace & Costco, this home is perfect for those seeking luxury & convenience. Enjoy endless hiking, mountain biking, & outdoor activities just 5 miles away.

700 W Drey Drive Phoenix, AZ 85021

$1,350,000
5 Beds
3 Baths
3,010 SqFt
Status Active
MLS # 6728029
Property Type Single Family Residence
Price Type --
Welcome to this breathtaking 5-bedroom, 3-bathroom residence in the heart of Central Phoenix. Situated on half an acre, with a large heated pool. The mature landscaping features orange, kumquat, pecan and pomegranate trees providing tranquility and privacy. You'll find a fully updated interior with custom touches that add unique character to every corner. Special features include: a new garage floor coating adds a sleek, finished look to a space that's often overlooked. Experience luxury living in a prime location, where comfort meets convenience. This is not just a house; it's the key to a lifestyle you deserve. The whole home water softener and RO filter at the kitchen sink are must haves in our desert climate. The home has smart home energy and security controls. A custom barn door in the primary suite is a beautiful architectural detail.

10563 E Thorite Avenue Mesa, AZ 85212

$1,350,000
5 Beds
4 Baths
4,195 SqFt
Status Active Under Contract
MLS # 6733940
Property Type Single Family Residence
Price Type --
10563 E. Thorite is yours. Complete luxurious home in The Estates at Eastmark. Gated community. Premium corner lot with only one adjacent neighbor. Gated entrance to home with sitting area. 12 ft. ceilings in the great room and 10 ft. everywhere else. Modern finishes with wireless technology enabling you to control the majority of the home, including cooking appliances, lighting, music, etc. Separate Casita which includes a living room separated from bedroom/bath. Separate den with sliding glass wall featuring a fountain. Bar/game room (pool table negotiable). The backyard is COMPLETE. Heated pool/spa with lighting, fire and landscape speakers. Entertainment area including grill, 2 fridge drawers, ice chest and sink. Outdoor furniture included with reasonable offer.

30805 N 119th Lane Peoria, AZ 85383

$1,350,000 - 5Br/5Ba -  for Sale in Blackstone At Vistancia B10, Peoria
Open House
$1,350,000
5 Beds
4.5 Baths
3,859 SqFt
Status Active
MLS # 6719285
Property Type Single Family Residence
Price Type --
Welcome to this exceptional residence nestled in the prestigious Blackstone Country Club. This exquisite home sits on an oversized lot, offering unparalleled privacy and luxurious living. Serene entrance with expansive use of pavers and a travertine tiled courtyard as well as pristine manicured landscaping welcomes you to your new home. As you step inside, you'll be greeted by an elegant foyer leading to a spacious open-concept living area, adorned with high ceilings and abundant natural light. The gourmet kitchen is a chef's dream, featuring top-of-the-line appliances, custom cabinetry, and a large center island perfect for entertaining and seating for 6! The master suite is a true retreat, boasting a spa-like ensuite bathroom with a soaking tub, walk-in shower, and dual vanities. Additional bedrooms are generously sized, each with its own unique charm and ample closet space. There is wonderful flex space in this home with a large area that's perfect for a movie night as well as a dedicated study area. The true gem of this property lies in its resort-style backyard. Step outside to your private oasis, with 3 covered patios with cantera columns overlooking the amazing pool with fire pots, fountains and water features. PENTAIR ultra temp heat pump for your swimming enjoyment. Relaxing built in fire pit that is perfect to enjoy the lovely Arizona evenings. Lush landscaping provides a serene backdrop, while multiple seating areas offer both sun and shade options. Leased Solar makes this home energy efficient! Garage features epoxy flooring, electrical upgrades, high end metal locking/floating garage cabinets, temperature controlled heat/cool and there is a full house water conditioning system. Don't miss the opportunity to own this remarkable home in one of north Peoria's most sought after neighborhoods and experience the epitome of elegant living.

8714 E Rancho Vista Drive Scottsdale, AZ 85251

$1,350,000 - 4Br/3Ba -  for Sale in Scottsdale Estates 14 Lots 1845-1925, Scottsdale
Open House
$1,350,000
4 Beds
3 Baths
2,475 SqFt
Status Active
MLS # 6746081
Property Type Single Family Residence
Price Type --
Welcome to home Old Town Scottsdale! This modern charmer underwent a complete remodel in 2023 — taken down to the studs—and added on a spacious primary suite encompassing 777sf. Highlights include dramatic 10ft/9ft/8ft ceiling elevations, custom lighting, and a new heated AND chilled PebbleTec pool. Every detail has been upgraded, from ABS plumbing and dual Goodman HVAC units to custom landscaping with a putting green. Also featuring an outdoor Napoleon BBQ, two indoor fireplaces, a spacious primary closet, CAT 5 cabling, and more. Enjoy living in the heart of Old Town Scottsdale with close proximity to nightlife, shopping & dining, Giants Spring Training Stadium, endless golf courses, Scottsdale's green belt - perfect for bike rides, HWY 101, Camelback Mtn, and only 15-minutes from ASU.

5250 E Deer Valley Drive Unit 153 Phoenix, AZ 85054

$1,349,999
3 Beds
2.5 Baths
2,175 SqFt
Status Active
MLS # 6717025
Property Type Apartment
Price Type --
Beautiful Corner Unit Featuring a huge wrap-around patio area. Interior finishes professionally selected featuring European Oak Engineered Hardwood Floors, Custom Black Metal Glass Doors, and a relaxing jet tub in primary suite. This home feels like a model home when you walk in. Outdoor patio area truly feels like an extension of the main living area. Exclusive clubhouse features meeting spaces, a large entertaining kitchen, coffee bar and movie lounge, 4400 sqft gym, and Olympic-length pool. The Luxe residents also get to enjoy additional amenities, including access to Toscana's staff service, heated pools, spas, fitness centers, & etc. Just minutes away from Mayo Clinic, Scottsdale Quarter, & Kierland Commons, with easy freeway access to downtown Phoenix & surrounding suburbs 2 Parking spaces with a large storage area in parking garage located next to the elevator. Power has been run for EV charger as well.

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