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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1537 W Butte Creek Boulevard San Tan Valley, AZ 85144

$1,150,000
3 Beds
2.5 Baths
3,997 SqFt
Status Active
MLS # 6756066
Property Type Single Family Residence
Price Type --
This luxurious desert estate is a masterpiece of craftsmanship and design, offering the ultimate in comfort and functionality. Located just steps from San Tan Regional Park, this home boasts breathtaking views, high-end finishes, and expansive living spaces both indoors and out. As you enter through the grand iron gate into a private courtyard, you're greeted by striking pillars and a covered patio, setting the tone for the elegance that awaits inside. This gorgeous home features stunning knotty alder crown molding, sealed travertine tile, and a massive glass and steel front door. The chef's kitchen is a dream, equipped with KitchenAid appliances, including dual ovens (one gas, one electric), a 6-burner gas stove, granite countertops, and a large island. (CLICK TO READ MORE) The kitchen opens to a spacious breakfast area with in-ceiling speakers. The expansive great room is flooded with natural light and boasts a built-in entertainment center, 100-year-old wood beams, and surround sound. The elevated dining room is an exquisite space with soaring 16-foot ceilings and custom built-ins, perfect for hosting gatherings. The master retreat is truly luxurious, with a massive bedroom and sitting area, a coffered ceiling with LED lighting, and a spa-like master bath featuring marble counters, a hydro bubble tub, and an oversized walk-in shower with Grohe fixtures. The oversized laundry room is fully equipped with a utility sink extra cabinets & countertop space. Additional highlights include a dedicated billiards/game room, a private home theater with stadium seating and a 154 screen, a 4-car garage with epoxy floors and built-in storage, and a detached 30'x40' RV garage/workshop. Outdoors, enjoy the serene beauty of the desert from the spacious covered patio, with a low-maintenance natural landscape, outdoor speakers, and space for RV parking. This estate offers the ultimate blend of luxury, privacy, and convenience, with hiking and mountain biking trails starting right outside your door and shopping just minutes away.

201 N Fawn Drive Payson, AZ 85541

$1,150,000
3 Beds
2 Baths
2,310 SqFt
Status Active
MLS # 6756145
Property Type Single Family Residence
Price Type --
Here is your chance to own elegance with character. Pride of ownership exudes in this tutor style three bedroom two bath home on just over an acre. Nestled In the quiet neighborhood of Manzanita Hills, commune with nature and enjoy the views on the back deck, the adjacent acre next-door is also available to purchase for your added privacy. As soon as you walk in the front door, you are greeted by a magnificent great room and stone fireplace. With a rustic atmosphere and Tuscan like kitchen there is room for all. Porcelain flooring and new interior paint has been completely redone as of December 2021, newer roof installed three years ago, solar panels have not been reinstalled. Owners will credit toward reinstallation and remaining lease amount of solar panel.

1040 E Osborn Road Unit 1201 Phoenix, AZ 85014

$1,150,000
2 Beds
2.5 Baths
2,409 SqFt
Status Active
MLS # 6733125
Property Type Apartment
Price Type --
Incredible 180 degree views throughout the day and into the night from the 12th floor at luxurious Crystal Point, Phoenix's premier high-rise community. This concierge building offers residents access to a host of amenities, including a fitness center with sauna and spa, a sparkling outdoor pool, a community center/clubhouse with a kitchen for larger entertainment needs, guest suites, 24-hour security guard, and secure underground parking. As you step into Unit 1201, you are greeted by an expansive open floor plan that seamlessly connects the living, dining, and kitchen areas. The living room is bathed in natural light, courtesy of the floor-to-ceiling windows that frame panoramic views of the city skyline and surrounding mountains. High ceilings and sleek, modern finishes enhance the sense of space and sophistication. The primary suite is a private sanctuary. Wake up to stunning sunrise views from your bedroom window, and unwind in the well-appointed en-suite bathroom, complete with a spa-like soaking tub, walk-in shower, and dual vanity sinks. A spacious walk-in closet provides ample storage for your wardrobe and accessories. The second bedroom is equally impressive, complemented by an en-suite second bathroom and two walk-in closets. An office overlooking the country club can also be used as a third bedroom when needed, with its own closet and privacy doors. Unit 1201 also features a private balcony where you can enjoy your morning coffee or evening cocktails while taking in the spectacular views. From Camelback Mountain to the East sweeping to the twinkling lights of Downtown Phoenix, a view like this is always thrilling. Additional amenities include in-unit laundry, dedicated storage unit, and two parking spots right next to the elevator. Crystal Point Tower offers an unparalleled living experience, combining modern luxury with the convenience of urban living.

4501 E Fountain Street Mesa, AZ 85205

$1,150,000
4 Beds
4.5 Baths
3,177 SqFt
Status Active
MLS # 6759889
Property Type Single Family Residence
Price Type --
Welcome to your dream home in the gated community of the Groves at Valencia! This stunning 4 bed, 4.5 bath home greets you with fantastic curb appeal, featuring a 3-car garage, paver driveway, stone accents, courtyard entry and lush turf. Step inside to an open layout w/ soaring ceilings, abundant natural light, wood-look tile flooring, custom built-ins, extensive AV upgrades and more! The chef's kitchen boasts quartz counters, a gas cooktop, upgraded cabinetry, and a large island with breakfast bar. The main suite offers a spa-like retreat with dual vanities, 2 full closets, a walk-in shower and tub. Entertain in style in the backyard oasis with a covered patio, ramada, BBQ area, sparkling pool and large grassy side yard. Convenient location near 202 & 60 plus close to shopping & dining

2270 Lichen Ridge Lane Prescott, AZ 86303

$1,150,000
3 Beds
3.5 Baths
3,734 SqFt
Status Active Under Contract
MLS # 6732956
Property Type Single Family Residence
Price Type --
Nestled in the highly sought-after Hassayampa Village Community, this 3-bedroom, 4-bath home offers an exceptional living experience. Spanning 3,700 square feet, this residence features a spacious and well-designed layout with the master suite conveniently located on the main level. The upstairs features a cozy loft, perfect for a home office or relaxation area. Downstairs, you'll find a versatile bonus room that can be used as a media room, gym, or additional living space. Additionally, the home boasts a large cedar closet, ideal for storing your seasonal wardrobe and keeping your garments in pristine condition. The backyard is a true garden oasis, boasting beautifully landscaped rock walls, natural rock boulders, and a variety of mature pines and junipers. The .65-acre lot provides ample space for outdoor activities and serene relaxation, all while enjoying the picturesque view of Thumb Butte. One of the highlights is the deck, which features a huge rock boulder, creating a unique and natural focal point in your outdoor living space. While the home displays potential, it does require some updating to truly shine. Inside, the living areas offer a harmonious blend of space and functionality, perfect for both entertaining and everyday living. The kitchen and bathrooms are ready for your personal touch and modern updates to transform this home into your dream residence. This home in Hassayampa Village Community is a rare gem, combining natural beauty with sophisticated living in one of the most desirable neighborhoods. It provides an excellent opportunity for customization, allowing you to create a home that perfectly suits your style and needs.

8259 E Mulberry Lane Scottsdale, AZ 85251

$1,150,000
5 Beds
3 Baths
2,883 SqFt
Status Active
MLS # 6740353
Property Type Single Family Residence
Price Type --
Discover this beautifully upgraded home, featuring an open-concept main house w/ over $120k in enhancements. The property includes a separate 695sf guest house + an enclosed climate control AZ room for a total of 2883sf - below current appraisal! The guest house features a living area, kitchen & 1 bed/1 bath, perfect for guests or rental income. The main house offers 4 bedrooms, 2 bathrooms, and an AZ room that leads to an outdoor space designed for entertaining. Enjoy a pool, outdoor kitchen & bar, putting green, and palm trees. Located close to Old Town Scottsdale, ASU, sports venues, and major highways, this home offers convenience and a vibrant lifestyle. Recent upgrades include a climate-controlled wine cellar, new roofing, windows, & hardwood floors.

5250 E Deer Valley Drive Unit 403 Phoenix, AZ 85054

$1,150,000
2 Beds
3 Baths
1,781 SqFt
Status Active
MLS # 6737255
Property Type Apartment
Price Type --
Penthouse Level Condo-where luxury and convenience come together to create an extraordinary resort lifestyle in an incredible location! Enjoy 2 BRs/den-flex room/2-1/2 baths, open floorplan, 11' ceilings, 2 walk-in closets in primary BR, laundry room, upgraded appliances/lighting/quartz, expansive patio/built-in barbecue, 2 parking spaces + 7' x 13' storage room in gated underground parking garage. Soft water, sewer, garbage, gas, internet included. Lush grounds, outdoor entertainment areas, fire pits, 12,000+ sf upscale clubhouse, 4000+ sf state-of-the-art gym, yoga room, conference room & working lounge, wine tasting room, Olympic-size pool + walk across the street to everything you could want with over 160+ restaurants/bars/shopping. Seller concessions for buyer closing costs! Unit 403 is perfectly positioned with no unit above, and no unit directly facing you! This like-new condo with its clean color pallet is ready for your personal touches and creativity. This incredible location in the master-planned community of Desert Ridge is just a few miles from Scottsdale, the hosting city for national events annually! You'll also have access to additional amenities at the adjacent sister development Toscana for your pleasure and enjoyment! THE LUXE is the place to live for the most discerning buyers providing a superior level of living at the greatest value among competitors. Not only do you have unbelievable entertainment and shopping across the street in the Desert Ridge Marketplace and High Street, but now underway is the newest 100+ acre mixed-use development City North that will provide more entertainment and value. Don't wait, this ready-to-move-in unit is far below the new-build prices, so make an offer the seller cannot refuse! (See the docs tab for an expanded list of condo upgrades, LUXE amenities & info about the surrounding area.) *Five minutes to Interstate 51 and Interstate 101 & 20/30 minutes to the airport. *Mayo Clinic - 2 miles; Abrazo Hospital Campus & HonorHealth Scottsdale Thompson Peak Medical Center - within 5 miles. *The Luxe/Toscana/Desert Ridge is perfectly positioned less than a few miles west of Scottsdale Road where national events are hosted annually such as the Waste Management Golf Open, Barrett-Jackson Car Show, and Arabian Horse Show to name a few. *The new City North development across the street is now under development!!! Planned with over 2 million square feet of office, 3,416+ multifamily units, 1,000+ hotel rooms, and retail and dining options. *Invest in The Luxe of Desert Ridge where you won't pay the higher North Scottsdale real estate prices for this kind of luxury and convenience. *Pickleball at the JW Marriott Desert Ridge right behind Toscana, Paradise Valley Community Center, Thompson Peak Park. *Golf - Numerous golf courses within a short distance from Desert Ridge.

37481 S Rancho Casitas Road Wickenburg, AZ 85390

$1,150,000
4 Beds
2.5 Baths
3,036 SqFt
Status Active Under Contract
MLS # 6756003
Property Type Single Family Residence
Price Type --
Saddle up and bring the horses! This 8.392-acre spread is a true gem for equestrians, boasting the only grass pastures around. It's got 2 wells, buried storage tanks, and no-climb fencing to keep your herd safe. There's plenty of room with fenced and cross-fenced areas, a dry pasture, 3 stalls with shade, an open-air barn, and a tack room. The 3 or 4-bedroom, 2.5-bath ranch-style home is crafted in a U-shape, with two bedrooms on each side for ultimate flexibility. Perched on a raised foundation, it offers breathtaking mountain and city light views, plus the comfort of a non-cement slab floor. The peaceful homestead features a driveway lined with mature, irrigated palm trees and is surrounded by citrus and ficus trees. The property includes two parcels: : a 5-acre lot with the house and a 3.39-acre fenced pasture. There's also a 2-car garage and a carport for your gear.

16829 E Nicklaus Drive Fountain Hills, AZ 85268

$1,150,000
4 Beds
3 Baths
2,897 SqFt
Status Active
MLS # 6707240
Property Type Single Family Residence
Price Type --
Nestled in a serene neighborhood and backing to a picturesque golf course, this exquisite 2-story Spanish Colonial home, built in 1987, offers timeless elegance and contemporary convenience. Spanning just under half an acre, the property features 4 spacious bedrooms, including a versatile main-level room that can serve as an office, and 3 bathrooms. A 3-car garage provides ample space for vehicles and storage. Inside, the home boasts classic Spanish Colonial elements such as arched doorways and a front central courtyard. While the home retains its original charm, it offers a wonderful opportunity for updates and renovations. The beautifully landscaped yard and pool provides space for gardening and recreation. This rare find combines enduring charm with modern amenities. Do not miss out.

4535 E Walter Way Phoenix, AZ 85050

$1,150,000
4 Beds
3 Baths
3,508 SqFt
Status Active
MLS # 6753307
Property Type Single Family Residence
Price Type --
Fantastic home with 4 bedrooms, 3 baths, spacious office that could be 5th bedroom & large loft/game room in the desirable Sanctuary gated community in Desert Ridge. Gourmet chef kitchen with upgraded appliances, plenty of cabinets for storage & walk-in pantry. Huge granite kitchen island with breakfast bar. Open spacious family room to entertain family & friends. Relaxing/large primary suite with spacious primary bathroom, 2 vanities, walk-in shower & roomy walk-in closet. Nice 3-car garage with epoxy flooring, 220V EV charger & room for storage. Peaceful/quite backyard with plenty of pavers & no home(s) behind back fence. Community playground is just 2 houses away. The community clubhouse/pool/spa/grills/entertainment areas & work-out facility is just a short walk away. Great location.

420 W Adamanda Drive Phoenix, AZ 85086

$1,150,000
4 Beds
3.5 Baths
2,359 SqFt
Status Active
MLS # 6756967
Property Type Single Family Residence
Price Type --
Embrace the ranch lifestyle on this exquisite Santa Fe-style horse property, sprawling over an acre w/ no HOA—your opportunity to truly personalize your space. This custom-built, single-level home has been newly updated w/ nearly $200k in upgrades, enhancing its natural light-filled interior, cozy fireplace, & impressive kitchen. It features two primary bedrooms, two generous guest rooms, & tranquil backyard views. Step outside to a private oasis complete w/ a pool, spa, new gazebo, & a detached casita w/ a kitchenette & bath. W/ two RV gates, hookups, and zoning for an additional septic system, this property is perfect for all of your needs. Experience peaceful country living just minutes from shopping, Lake Pleasant, North Scottsdale, & world-class golf.

7250 E Calle Primera Vista Scottsdale, AZ 85266

$1,150,000
3 Beds
2 Baths
2,182 SqFt
Status Active
MLS # 6747214
Property Type Townhouse
Price Type --
North Scottsdale luxury home with over $165k in upgrades! Nestled in the gated 55+ community of Scottsdale Heights this fully furnished home features an open floorplan with 12' ceilings, hardwood and tile flooring, custom window coverings, recessed lighting, and a convenient office/flex room. The gourmet kitchen highlights a 12' foot long island with waterfall quartz countertops, gas cooktop, and walk-in pantry, perfect for entertaining. The living area includes a linear gas fireplace and transitions to the outside patio through 9' multi-sliding glass doors. Enjoy Arizona living in your private backyard with a covered patio featuring marble pavers, a retractable sunshade, tranquil water feature and built-in BBQ. A must see in this boutique community!

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