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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1982 Promontory -- Prescott, AZ 86305

$1,195,000
5 Beds
4.5 Baths
5,241 SqFt
Status Active
MLS # 6705770
Property Type Single Family Residence
Price Type --
Generous spaces abound with a total of 5 bedrooms plus bonus room, private office, 4 bathrooms: 3 ENSUITE BEDROOMS ON THE MAIN FLOOR with apartment on second floor complete with full bath and kitchenette. To fully appreciate all of the exquisite details throughout this custom home is to see them with your own eyes! What is most unique is the ability to use the clever design for any multitude of purposes whether it is to accommodate all the generations of your family or to facilitate your growing business. You will find the unparalleled tasteful aesthetic and functionality. When one describes the kitchen as a chef's dream, it's an understatement due to its upscale appliances, and gorgeous finishes. The main floor also features a large laundry room with a pantry, cabinets, counterspace, sink, and powder room, attached to the large 3 car garage, and a basement workshop; providing ample space for hobbies and projects. The breathtaking outdoors match the interior of this grand house with panoramic and thickly forested views of the mile high city. Terraced landscapes provide many options for exploring those views making this home what it is, an amazing retreat. Situated close to town for shopping, dining, hiking or whatever you enjoy doing.

3436 N 38th Place Phoenix, AZ 85018

$1,195,000
4 Beds
3.5 Baths
3,391 SqFt
Status Active
MLS # 6740912
Property Type Single Family Residence
Price Type --
***Motivated Seller*** ***SEND OFFERS*** Step into luxury with this stunning 2018 residence in a prestigious, gated community close to Arcadia Lite! Set on a prime corner lot with panoramic views, this smart home offers a dramatic 20-foot entryway with abundant natural light. The elegant interior features chic porcelain tile flooring throughout, a spacious master suite with a private walkout balcony, and three beautifully designed bedrooms, two on the second floor and one on the first floor. Each with its own stylishly tiled bathroom. The gourmet kitchen is a chef's dream, showcasing premium quartz countertops, top-of-the-line appliances, and custom cabinetry, with additional storage in a butler's pantry and a walk-in pantry adjacent to a large laundry room. This home also boasts a generous loft area, a flexible open space perfect for dining, an office, or a gym, and a meticulously designed desert oasis backyard. Located just 15 minutes from Sky Harbor, downtown Phoenix, and Scottsdale, this property offers the perfect blend of suburban tranquility and urban convenience. Don't miss your chance to make this extraordinary address your new home!

11621 N 134th Street Scottsdale, AZ 85259

$1,195,000
3 Beds
3.5 Baths
2,184 SqFt
Status Active
MLS # 6754237
Property Type Single Family Residence
Price Type --
ARIZONA LIVING AT IT'S BEST! Rare Find, seems like new, immaculately maintained 2nd home. Has all the finest finishes & Just painted 8/24 interior & exterior. Impressive old world turret entry to gated courtyard to model perfect single level home with separate private entry guest casita. Main house boasts two bedrooms, an office & 2.5 bathrooms. State of the art kitchen w/wolf gas cooktop & oven & pasta filler, sub zero frig, Asko DW, granite countertops. Open floor plan to dining area, bar & great rm with fireplace with exit to covered patio, heated spa-pool & colorful sunsets. Upper deck has 180 degree VIEWS of mountains, city lights & Camelback Mountain. Upgrades t/o, premium lot, domed ceilings, art niches. In exclusive gated Vista Collina. 20 single family luxury home enclave. THIS IS NOT A CONDOMINIUM AS SHOWN IN TAX RECORDS. IT IS A SINGLE FAMILY DETACHED HOME. Gated Side yard for your family pet to romp. Close to fine dining, shopping, desirable Scottsdale & BASIS Schools, hiking trails, the Mayo Clinic & easy access to freeways.

37907 N 17th Place Phoenix, AZ 85086

$1,195,000
4 Beds
3 Baths
3,059 SqFt
Status Active
MLS # 6736434
Property Type Single Family Residence
Price Type --
Welcome to this gorgeous North Phoenix home, a true gem offering luxurious living on over an acre of land. This property features a custom casita, perfect for guests or rental income, currently generating $1,450 per month. The main house and the casita host 4 spacious bedrooms, 3 bathrooms, den office and a 3-car garage. The centerpiece of outdoor living is a beautiful brand new sparkling pebble sheen fenced pool, providing a refreshing retreat in the desert heat. Enjoy stunning mountain and desert views from every angle of this pristine home. Step inside to be greeted by 14-foot ceilings adorned with custom dark beams, enhancing the sense of space and elegance. The kitchen is a chef's dream with a beautiful breakfast bar illuminated by pendant lighting. This property is equipped with three iron gates, offering ample access and convenience. The cozy, full-length back patio is perfect for relaxing and watching the scenic Arizona sunsets. Although this is a horse property, it does not currently have any horse facilities, giving you the flexibility to customize it to your needs. The home is in pristine condition, surrounded by many new custom homes. Located just 5 miles from Scottsdale, this home is close to hiking trails, golf courses, downtown Cave Creek, and much more. Embrace the fantastic lifestyle this North Phoenix home offers!

23317 S 182nd Street Gilbert, AZ 85298

$1,195,000
3 Beds
3 Baths
2,258 SqFt
Status Active
MLS # 6741146
Property Type Single Family Residence
Price Type --
Your dream home is here! Nestled on a sprawling 2.47-acre lot w/ open barn stalls, this stunning property offers an exceptional blend of luxury and comfort, surrounded by a lush landscape. As you enter, the expansive driveway and ample parking spaces set the stage for an impressive welcome. Step inside to discover a sleek interior that combines modern elegance with functional design. The home features luxury vinyl plank T/O, recessed lighting, a soothing neutral palette, and vaulted ceilings that enhance the sense of space. The heart of the home is a sizable great room, accented with a charming brick fireplace, providing a perfect setting for relaxation... This home was a complete re-do down to the studs. It was a project of love and waiting for the perfect family!! Welcome home! The chef's kitchen is a masterpiece of style and convenience, boasting pristine white cabinetry, top-of-the-line stainless steel appliances, chic subway tile backsplash, and gleaming quartz counters. A large center island with a butcher-block breakfast bar and a walk-in pantry complete this dream kitchen. Retreat to the serene main suite, offering direct access to the lush backyard and a private bathroom with dual sinks and a standalone tub for ultimate relaxation. Additionally, the property includes a practical laundry room with an extra bathroom and direct backyard access. Outside, the vast backyard is a private oasis featuring a covered patio, a delightful play area, and a detached carport with a storage room. The extensive space provides ample opportunity for outdoor activities and future expansion. This property is a true gem that offers both luxury and comfort in a magnificent setting. Don't miss the chance to experience this exquisite home for yourself!

36780 N Crucillo Drive Queen Creek, AZ 85140

$1,195,000
2 Beds
2.5 Baths
2,299 SqFt
Status Active
MLS # 6692358
Property Type Single Family Residence
Price Type --
Get ready to be amazed by 36780 N Crucillo Dr, perched on the edge of Queen Creek's top golf course! This home offers jaw-dropping mountain views, stunning sunsets, and the best vistas in the Encanterra Community. Step inside and be wowed by a chic accent wall, quartz countertops, and a sleek new backsplash. Fresh paint and custom electric shades light up the living room, master, and guest bedroom. Enjoy a gourmet kitchen, fully paid solar panels, and surround sound. The backyard is an entertainer's dream with misters, electric shades, a hot tub, an outdoor kitchen, a gas firepit, pergolas with electricity, and a 3-hole putting green. This is a must-see home you don't want to miss!

118 E Kaler Drive Phoenix, AZ 85020

$1,195,000
3 Beds
2.5 Baths
2,519 SqFt
Status Active Under Contract
MLS # 6704860
Property Type Single Family Residence
Price Type --
Ideal North Central Phoenix Tastefully Upgraded Home Now Vacant, Fabulous remodel with loads of functionality and designer touches. 3 bedrooms with black out office/media room. Chef's dream kitchen features 48'' double gas oven with custom ventilation hood. Farm sink with custom faucet, Craft dual ice refrigerator, Front vent produce/child snack beverage fridge. Geometrical Wallpaper with white brick backsplash/floating shelves. Large walk in custom Pantry, Primary suite is MAGNIFICENT with large dual closets and gorgeous primary bathroom. Spacious flood irrigated lot with room for addition. Newer Roof, HVAC, Electric Panel, Sewer Line.

3717 E Appaloosa Road Gilbert, AZ 85296

$1,195,000
4 Beds
3 Baths
3,461 SqFt
Status Active
MLS # 6709046
Property Type Single Family Residence
Price Type --
Step into luxury living in Gilbert, Arizona with this exquisite four-bedroom, three-bathroom residence, boasting a den and a bonus room, meticulously crafted with upgrades throughout. Nestled in the tranquil neighborhood of Morrison Ranch, this home offers an unparalleled blend of comfort, style, and functionality. As you enter, you'll be greeted by an inviting ambiance, with an open-concept layout that seamlessly integrates the living, dining, and kitchen areas. The heart of the home, the gourmet kitchen, is a chef's dream, featuring Quartz countertops, designer stainless steel appliances including double ovens and gas cooktop, and upgraded cabinetry. Retreat to the spacious primary suite, where relaxation awaits. Pamper yourself in the luxurious ensuite bath, complete with huge walk in shower, and dual vanity sinks. Primary suite also features dual walk in closets! Three additional well-appointed bedrooms provide ample space for family members or guests, while the bonus room and den offer flexibility for a home office, playroom, game room or study. The allure of this home extends beyond its interior, with outdoor spaces designed for leisure and recreation. Enjoy the expansive patio, lush landscaping and heated pool. And don't forget the three car tandem garage! Conveniently located near schools, parks, shopping, and dining, this residence offers the perfect blend of suburban tranquility and urban convenience. With upgrades at every turn and a versatile floor plan to accommodate your lifestyle, this is truly a home where memories are made. Don't miss the opportunity to make it yours!

3038 E Thunderhill Place Phoenix, AZ 85048

$1,195,000
6 Beds
3.5 Baths
5,505 SqFt
Status Active
MLS # 6732109
Property Type Single Family Residence
Price Type --
Enjoy the flexibility offered in a luxury home that serves multiple purposes, eg offices, specialty room, multimedia room, gym, storage and so much more. At the heart is it's large kitchen with a multitude of features desired for entertainment, eg Viking appliances, built in refrigerator/freezer, soft close Schuler cabinets, fold out spice racks, warming drawers, wall ovens, induction stove, R/O water filtration, huge island and open to all entertainment spaces. This layout offers significant privacy with a turnkey backyard, making maintenance easy yet spacious. The seven dedicated rooms are currently used as four bedrooms, two offices and a craft room. A large downstairs office can easily be converted to self-contained bedroom/suite. Enjoy luxury living at an exceptional value.

193 S Union Park Drive Payson, AZ 85541

$1,195,000
3 Beds
4.5 Baths
4,691 SqFt
Status Active
MLS # 6704155
Property Type Single Family Residence
Price Type --
Star Valley Stunner! Meticulously maintained log cabin, carefully crafted with imported Romanian wood. All 3 levels feature unobstructed breathtaking views of Monument Peak, Granite Dells, and the Mogollon Rim, and the almost 2.2-acre property backs to the Tonto National Forest. This charming cabin has 3 levels with ample room to entertain. There are 3 large master bedrooms, 4.5 bathrooms, and a 2-car garage, and it is absolutely move-in ready! This perfect cabin has a spacious open floor plan, a gourmet kitchen with a large island, gorgeous chalet windows that allow the ideal amount of natural light during the day and star gazing at night, soaring ceilings, oak floors, & tons of rustic charm but not lacking in the modern details for laid back comfortable living.

8107 E San Miguel Avenue Scottsdale, AZ 85250

$1,195,000 - 3Br/2Ba -  for Sale in Park Scottsdale 12, Scottsdale
Open House
$1,195,000
3 Beds
2 Baths
2,146 SqFt
Status Active
MLS # 6760724
Property Type Single Family Residence
Price Type --
Discover luxury living in this beautifully renovated home featuring a wealth of modern upgrades. The primary bathroom is a true sanctuary, boasting a steam shower, a rain shower with body sprayers, custom glass enclosure, a seated bench, and an oversized wood vanity with a Kohler toilet. Porcelain tiles extend from floor to ceiling, creating a spa-like atmosphere. Stylish Bedrooms and Closets: Enjoy a large walk-in closet equipped with a custom closet system, adjustable shelving, and jewelry inserts, providing ample storage and organization. Recent Upgrades: This home has undergone significant renovations, including a new black roof with a warranty (2023) and a complete plumbing sewer line replacement. The HVAC system has also been upgraded with a new air conditioner/heat pump and all new ducts. Smooth texture drywall throughout adds to the modern aesthetic. Gourmet Kitchen: The heart of the home is the oversized kitchen, featuring luxurious cabinetry, a waterfall quartz island with a sink, and high-end waterproof large plank flooring. New appliancesincluding a wine fridge and beverage centermake this kitchen perfect for entertaining. The stylish oat-tiled backsplash and under-cabinet lighting add a touch of elegance. Inviting Living Spaces: Relax in the family room, enhanced by a new 72-inch custom electric fireplace with Anatracite tile. The Arizona room, complete with a dry bar and separate office space, provides additional living options. Elegant Design Features: The home showcases wood paneling throughout, including the primary bedroom, complemented by custom ceiling fans and lighting fixtures. Zebra blinds have been added to the main room and bedrooms for style and privacy. Outdoor Oasis: Step outside to an entertainer's dream backyard featuring two custom patio overhangs, a resurfaced pebble tec pool with a new pump and filter, and a recently added three-hole putting green. The front and backyards boast full synthetic turf and pavers, with an extra-tall block wall for privacy. Convenience and Location: With an oversized driveway for extra parking and an RV gate, this home is as functional as it is beautiful. Located next to Chaparral Park and in a community with no HOA, you'll enjoy the best of both worlds. This exceptional home is a perfect blend of style, comfort, and conveniencedon't miss the opportunity to make it yours!

2144 E State Avenue Phoenix, AZ 85020

$1,195,000 - 3Br/3Ba -  for Sale in Lincoln View, Phoenix
Open House
New
$1,195,000
3 Beds
3 Baths
2,487 SqFt
Status Active
MLS # 6762011
Property Type Single Family Residence
Price Type --
Discover this stunning executive home in the highly sought out Lincoln View neighborhood, offering both breathtaking mountain and city views. This 3-bedroom, 3-bathroom gem has been meticulously renovated with a Desert Organic Design, filling the space with natural light. Perfect for entertaining, the open-concept floor plan features a chef's kitchen with custom cabinetry, a large quartz island, stainless appliances, a walk-in pantry, and an elegant quartz backsplash. The living area seamlessly extends to the outdoor pool, providing an incredible backdrop of Piestewa Peak. Additional highlights include new windows, upgraded flooring, luxury-tiled bathrooms, and fresh neutral paint throughout. Enjoy professional desert landscaping, a sparkling pool, a new roof, and an epoxy-coated 2-car garage. Plus, the private entrance to the Piestewa Peak hiking trail is just steps away, with easy access to freeways, high-end shopping , golf courses, dining, and entertainment. Don't miss your chance to own this exquisite home in an unbeatable location

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