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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12578 E Desert Cove Avenue Scottsdale, AZ 85259

$1,298,000
5 Beds
3 Baths
2,544 SqFt
Status Active
MLS # 6734625
Property Type Single Family Residence
Price Type --
THIS BEAUTIFUL PROPERTY IS BACK ON THE MARKET AND READY FOR A NEW OWNER TO MAKE THEIR HOME!!! Nestled in the desirable gated community of Sierra Foothills, this 5-bedroom, 3-bathroom masterpiece boasts a split floor plan for ultimate privacy. Step inside and be greeted by an open floor plan with soaring vaulted ceilings, creating a light and airy atmosphere. The heart of the home is a dream kitchen, complete with top-of-the-line appliances: a Viking refrigerator and dishwasher, an expansive 8-burner gas range, gleaming stainless steel accents, and a convenient pot filler. New quartz countertops and beautiful white cabinets offer ample storage and prep space. A dedicated coffee bar with its own island adds a touch of sophistication Modern touches abound throughout the home. Brand new plantation shutters adorn the windows, while new ceiling fans ensure year-round comfort. A beautiful electrical fireplace warms the family room, creating a cozy ambiance. The luxurious living extends to the three-car garage. Custom-built cabinetry provides ample storage, while a built-in refrigerator, double ovens, microwave, and utility sink make it a haven for entertaining or hobbies. Unwind and create lasting memories in the private backyard oasis. Take a dip in the sparkling heated pool and spa, relax under the expansive covered patio, or gather around the gas firepit in the charming gazebo. An RV gate with a full concrete pad offers additional parking for your boat, RV, or extra vehicles.

588 E Peach Tree Street Queen Creek, AZ 85140

$1,297,900
2 Beds
2.5 Baths
2,367 SqFt
Status Active
MLS # 6733421
Property Type Single Family Residence
Price Type --
This Palermo floorplan creates the perfect indoor and outdoor space. The expansive kitchen with its large center island is a chef's dream, providing ample space for culinary creations and gatherings. This home offers a spacious primary suite, ensuring both comfort and privacy. The thoughtful addition of a ''smart space'' housing laundry facilities and cabinetry further enhances the convenience and functionality of daily living. Both bathrooms have been upgraded with tile surrounds and beautiful light fixtures. Additional features include shutters, a carpet-free environment and gorgeous views of the golf course. The secondary bedroom is also expanded for your guests. Start living the Good Life at Encanterra today!

1295 Running Elk Road Payson, AZ 85541

$1,295,855
6 Beds
4 Baths
400 SqFt
Status Active
MLS # 6730079
Property Type Single Family Residence
Price Type --
Welcome to 1295 S Running Elk Rd, a hidden gem nestled under the Mogollon Rim! Prepare to be enchanted by this exceptional property that combines the tranquility of a cabin in the woods with the comforts of modern living. This turn key, move in ready, spacious home boasts six generously sized bedrooms and three and a half bathrooms, providing ample space for the whole family or accommodating guests with ease. (sleeps 30-35) With over 4,000 square feet of living space, there is room for everyone to spread out and enjoy their own private retreat. The oversized covered front porch and back deck offer unparalleled mountain views and fresh mountain air. Situated on a sprawling 3.65-acre lot, this property is a nature lover's paradise. The expansive grounds back onto the national forest, offering unparalleled privacy and a breathtaking backdrop of pristine wilderness. Explore the beauty of the great outdoors right from your doorstep, with hiking trails, wildlife sightings, and several rim lakes and rivers waiting for you to explore and enjoy. Equestrian enthusiast? Bring your horses and ride for days! One of the highlights of this property is the fishing pond, providing a serene oasis where you can cast your worries away and immerse yourself in the joys of angling. Whether you're an experienced angler or simply enjoy the peaceful ambiance of a tranquil pond, this feature is sure to be a favorite among outdoor enthusiasts. For added convenience and flexibility, this property also offers potential for separate guest quarters. This property presents an incredible opportunity for multi-generational living, allowing different generations to come together and create lasting memories in a peaceful mountain setting. Considering a corporate retreat? This property would be perfect! Alternatively, it can serve as your ideal cabin in the woods, providing a sanctuary where you can escape the hustle and bustle of city life and immerse yourself in the beauty of nature. Don't miss your chance to own this idyllic retreat at 1295 S Running Elk Rd, where the serenity of the forest meets the comforts of a modern home. Embrace a lifestyle filled with relaxation, adventure, and cherished moments in this truly exceptional property. (Property has two private wells but only one is in use. The other is capped off.)

642 E Cornman Road Coolidge, AZ 85128

$1,295,000
3 Beds
2 Baths
1,369 SqFt
Status Active
MLS # 6726835
Property Type Single Family Residence
Price Type --
This property is truly a horse lover's dream with all the amenities you could possibly need. The barndominium styled home is perfect for comfortable living, while the bunk house casitas offer additional space for guests or renters. The outdoor living breezeways with a bar and fireplace are ideal for entertaining and enjoying the beautiful surroundings. The horse set up is top-notch, with 37 covered pipe horse stalls, a full-size roping arena, covered hay barn, workshop, and separate barn office. The 8 RV hookups make it easy to accommodate visitors, and the grounds keeper quarters ensure that everything is well-maintained. Don't miss this incredible opportunity to live the Yellowstone life on 17 acres of deeded & leased land w/ endless possibilities for both work and play. Contact us toda Home has new hurricane rated roof! Arena is 100x200, has newer pneumatic remote control shoots, 30 foot steel walled round pen, the barn has finished drywalled and air conditioned office, private owner tack room, All stalls are 100% covered, boarder 3 wash racks, dog kennels, boarder tack and grain rooms, mechanical shop. 14 acre turn-out as well as additional covered stalls not listed above and covered hay bays large enough to fit several squeezes of hay. Dont let this opportunity getaway the property is minutes from the freeway, in the new Pinal County Corridor of trade, business and progress, perfect for the high tech owners who want extra income, and a great work life balance.!!

8503 S 9th Drive Unit 17 Phoenix, AZ 85041

$1,295,000
4 Beds
3 Baths
3,033 SqFt
Status Active
MLS # 6610457
Property Type Single Family Residence
Price Type --
Introducing Heard Farm at South Mountain, a brand new community of 24 modern farmhouses with sophisticated architecture designed for healthy, sustainable living! Nestled in South Mountain with quick access to downtown Phoenix, Heard Farm seamlessly blends indoor and outdoor living with fresh floor plans designed for the way you want to live. Option for 720 sq ft mezzanine/bedroom above garage (not included in list price.)

5635 W Melinda Lane Glendale, AZ 85308

$1,295,000
3 Beds
3 Baths
3,441 SqFt
Status Active
MLS # 6742944
Property Type Single Family Residence
Price Type --
This beautifully maintained one-story home in Arrowhead Lakes exudes casual elegance inside and out. Situated on a large north/south facing lot with long lake and mountain views. The light-filled home features large living areas: separate living and family rooms with Italian stone fireplaces, a den, and three bedrooms with walk-in closets and attached full bathrooms. Recently remodeled kitchen and wet bar feature quartz countertops, a Subzero refrigerator, Thermador induction cooktop, and new Kitchen Aid appliances. Oak engineered hardwood floors throughout, marble bathroom surfaces, and carpet in the bedrooms. The resort-like backyard has a covered Italian travertine patio, misting system, outdoor fireplace, built-in grill, and Trex boat dock. Pool refurbished in March 2024.

4602 E Oberlin Way Cave Creek, AZ 85331

$1,295,000
5 Beds
3.5 Baths
4,624 SqFt
Status Active
MLS # 6752881
Property Type Single Family Residence
Price Type --
Nestled in the serene and gated community of Diamond Creek, is this luxurious 5-bedroom, 3.5-bathroom home with designer finishes that exude sophistication and modern elegance. Upon entering, you're greeted by new hardwood oak floors and spacious, sunlit living areas with energy-efficient solar shades. The heart of the home is the gourmet kitchen which boasts top-of-the-line Wolf and Sub-Zero appliances, new cabinets, stunning quartz countertops, and an oversized island perfect for entertaining. The downstairs area offers a versatile office space tucked behind double doors, ideal for working from home, and a guest room with an en-suite bathroom, ensuring privacy and convenience for visitors. The home also features an updated, sleek wet bar, a Sonos surround sound system, a beautiful pool and backyard with outdoor spaces designed for relaxation and entertainment. Each bedroom provides a retreat-like ambiance, with the master suite offering two walk-in closets, a fireplace, and a spa-like bathroom. A brand-new home theater system, complete with a 120-inch screen, projector, and cutting-edge sound system, promises an immersive cinematic experience right in the comfort of your own home. A state-of-the-art security system with three outdoor cameras ensures peace of mind, while three new AC units guarantee optimal climate control year-round. Energy efficiency is enhanced with new insulation, ductwork, and solar panels, significantly reducing energy costs. The updated laundry room is equipped with a new washer and dryer, designed with ample storage and functionality. The property is located in a secure, gated community, which also offers proximity to top-rated schools, fine dining, shopping, and recreational facilities. The new roof, installed in 2019, ensures the home's structural integrity and adds to its curb appeal. This home is a rare find that combines modern upgrades, sophisticated design, and advanced technology. Every detail has been meticulously accounted for to offer the highest level of comfort, efficiency, and style. With its prime location and numerous upgrades, this residence is more than just a home; it's a dream and the lifestyle that you have been searching for.

1398 Ridgewood Drive Prescott, AZ 86305

$1,295,000
3 Beds
2 Baths
2,375 SqFt
Status Active
MLS # 6756394
Property Type Single Family Residence
Price Type --
Welcome to Enchanted Canyon. With a spacious, open floor plan, this home is nestled into the boulders with views of Thumb Butte. Floor to ceiling stacked stone fireplace in living room, with rustic wood and beamed ceilings. Wood-style porcelain tile flooring with carpet in bedrooms. Primary suite complete with additional stacked stone fireplace, large walk-in closet, dual vanity sinks, separate garden tub and walk-in shower with beautiful stacked stone details. Well-lit kitchen boasts stainless steel Jenn-Air appliances, black walnut cabinets, large walk-in pantry, farm sink and separate vegetable sink in island and gorgeous picture window. Living area opens out to a beautiful back patio, surrounded by large boulders and is a perfect place to enjoy the outdoors. The 3 car garage has plenty of storage with built-in cabinetry, utility sink and a flat driveway.

8301 E Angus Drive Scottsdale, AZ 85251

$1,295,000
4 Beds
3.5 Baths
2,615 SqFt
Status Active
MLS # 6745058
Property Type Single Family Residence
Price Type --
This stunning residence features engineered hardwood flooring throughout and boasts raised 10-foot ceilings that create an airy, open atmosphere. Custom 18 foot slider that leads to a beautifully landscaped outdoor oasis that features a built-in ramada and grill, multiple citrus tress, a detached gazebo and full privacy with a 15 foot wall of greenery! The kitchen is a chef's dream with marble countertops and high-end Viking appliances. Huge custom master suite with a 10x10 walk in closet and a private secret garden! With four oversized bedrooms and 3.5 elegant bathrooms, this home offers ample space for relaxation and entertaining. This home also has a massive side yard built perfectly for an RV and lastly, paid off solar panels!

22611 W Patton Road Wittmann, AZ 85361

$1,295,000 - 6Br/4Ba -  for Sale in -, Wittmann
New
$1,295,000
6 Beds
3.5 Baths
4,179 SqFt
Status Active
MLS # 6761177
Property Type Single Family Residence
Price Type --
Nestled just outside of Surprise in Wittmann, this exquisite custom home offers the perfect blend of luxury living and equestrian convenience. Situated on 2.5 acres of fully walled, private land, this estate is accessible via a paved main road and provides an idyllic retreat with easy freeway access. Step inside to find a beautifully remodeled kitchen (2022) that is a chef's dream, featuring a Forno 8-burner stove with double oven and pot filler, a Forno microwave/convection oven, and a spacious refrigerator—all designed for gourmet cooking and entertaining. The kitchen is complemented by dark wood-stained doors, adding to the home's warm, inviting ambiance. Outside, the property is thoughtfully designed for both leisure and practicality. Enjoy the expansive paved patio area with solar lighting for a peaceful evening outdoors. For horse enthusiasts, the second parcel boasts 3 horse stables, a round pen, and an arena, all equipped with water, fans, and high-speed internet. Additional highlights include a private well with a recently replaced pump and well box, owned and PAID-OFF SOLAR PANELS ensuring low utility costs, a gated entrance for added privacy, and a 4-car garage with an RV charging outlet. The property's central vacuum system adds modern convenience to this serene country estate. With unparalleled amenities, privacy, and high-speed internet, this property is the perfect haven for those seeking luxury and the equestrian lifestyle.

120 E Rio Salado Parkway Unit 703 Tempe, AZ 85281

$1,295,000
3 Beds
2.5 Baths
2,257 SqFt
Status Active
MLS # 6750949
Property Type Apartment
Price Type --
This is It!!! This fully furnished Penthouse situated high above Edgewater's water's edge at Tempe town lake. This opulent 3 bedroom boasts elevated 180 degree 7th story balcony, panoramic views of city, mountains, lake & valley from east to west. (especially on the 4th of July). With close proximity to ASU & down town Tempe, there's quick access to ASU athletic events, Tempe Towne Lake/ Mill Ave. night life and easy access to MLB Spring Training. Additional amenities include walking and biking paths, boat rentals, lakeside live concerts, private fitness center, 24 hr concierge, conference & pool rooms, heated pool/spa and secure private parking . Don't miss this select opportunity! Its sure to please the discerning, active, traveling, lock and leave, individuals who enjoy the rare air!

3014 E Winchcomb Drive Phoenix, AZ 85032

$1,295,000
4 Beds
3 Baths
3,272 SqFt
Status Active
MLS # 6742731
Property Type Single Family Residence
Price Type --
A rare opportunity in the Cimarron Manor community. this beautifully appointed custom home with No HOA on over a 1/4 acre lot, and close to Scottsdale, 51 & 101 Freeways, Camelback Corridor, Downtown Phoenix, Central Corridor, and minutes to the airport. 4 bedroom 3 bath home. In 2022 replaced roof, solar panel system, remodeled pool, pool heater, repainted, new flooring, putting green, exterior paint., and LG Fridge. There is an 80 gallon water heater, soft water & filtration system. In primary bedroom, there is a gorgeous walk in closet, Steam Shower, and Toto Toilet. Full wet Bar. Backyard and a sizeable grassy lawn, and does the front yard. Plenty of space to entertain both inside and out. You do not want to miss this one. Can sell as fully furnished as well.

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