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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4547 S Raster -- Mesa, AZ 85212

$1,100,000
5 Beds
4.5 Baths
3,802 SqFt
Status Active
MLS # 6652779
Property Type Single Family Residence
Price Type --
Priced $134k BELOW appraised value! Do you love New Construction but are not interested in doing finishing touches after closing like window treatments, landscaping, pools, bbq's, & personal design elements? You won't have to with this 5 bedroom, 4.5 bath, 3800+ SF home built in 2023. Everything has already been done inside & out. Master has private sitting/office area, huge double walk-in showers & 2 closets. One even exits to large laundry room. 2 additional bedrooms have personal on-suites. The kitchen is a dream come true, w/double ovens, pot filler, huge island w/seating, quarts counter tops & coffee bar area, but it doesn't end there! Bonus Butler's Pantry awaits around the corner & has additional counter space w/cabinet storage above & below, 2nd sink, 2nd fridge & large walk-in pantry. The kitchen/dining/living area is open & flowing w/vaulted ceilings & beautiful faux wooden beams. To top it off, there is also an added bonus/game room. We said inside & outside! The exterior has the same attention to detail. Enter through a private courtyard & immediately look through to a wall of glass inviting you to the backyard. It includes a sitting area, luxury pool & spa, covered pellet BBQ, fire-pit w/sitting area, play/game area, outdoor shower & even a dog run. The list of amenities goes on, including 3-car garage, electric blinds, located across from a park & more. Our suggestion - you owe it to yourself to check it out! We're convinced you will not be disappointed!

8291 E Sierra Pinta Drive Scottsdale, AZ 85255

$1,100,000
3 Beds
2 Baths
1,946 SqFt
Status Active Under Contract
MLS # 6752120
Property Type Single Family Residence
Price Type --
Experience luxurious living in this beautifully renovated 3-bedroom, 2-bathroom home nestled in the guard-gated community of Grayhawk in Scottsdale. Positioned adjacent to a wash with quiet neighbors, this home offers unparalleled privacy and stunning mountain views. This home's practical layout was improved with a major renovation completed in 2019. The kitchen is a chef's dream, boasting ceiling-height custom cabinets, brass fixtures, a copper apron-front farm sink, and a pot filler above the gas Viking cooktop. Leathered quartzite counters with a waterfall-edge peninsula add both style and functionality. The great room features a dry bar with a wine fridge, custom cabinetry, and a quartzite counter, perfect for entertaining. Sonos speakers in the great room, patio, primary bedroom, and bath add a touch of luxury, while new engineered hardwood floors and taller baseboards create a seamless flow throughout. The primary suite is a true retreat with a walk-in, doorless shower, new quartz countertops, and modern fixtures. Both bathrooms have been fully updated with new tile, cabinets, and fixtures, creating spa-like spaces. Outdoors, the private and low-maintenance yard is perfect for relaxing with an outdoor fireplace, new turf and landscape lighting. The 2 car garage includes a workbench, cabinets, and a NEMA outlet for EV charging. With a new AC unit installed in 2024, this home is move-in ready and built to impress. See documents tab for full list of upgrades. Enjoy easy access to community amenities, including a pool, walking paths, and a variety of all-age events such as painting classes, bingo nights, and food trucks. Just a 5-minute stroll to Starbucks, this location is as convenient as it is serene.

9333 W Los Gatos Drive Peoria, AZ 85383

$1,100,000
4 Beds
3.5 Baths
3,729 SqFt
Status Active
MLS # 6753767
Property Type Single Family Residence
Price Type --
Nestled in the highly sought-after community of The Meadows, this stunning residence offers an exceptional lifestyle in the heart of North Peoria. Located next to a lush park, this meticulously maintained home is truly a standout! As you step inside, you'll be captivated by the open split floor plan and custom finishes throughout. The bright, neutral palette leads you into the living room and the open kitchen, boasting soaring 12-foot ceilings. The gourmet kitchen features high-end maple cabinetry, stainless steel appliances, a gas range, quartz countertops, a walk-in pantry, and an island with a breakfast bar. This home offers 4 bedrooms, a bonus room, 3.5 baths, a 3-car garage, and the highly desirable RV gate with parking—a rare find in today's market. The spacious great room is complemented by an additional family room, providing plenty of space for relaxation. The main bedroom includes an ensuite with dual vanities, a separate tub and shower, and a walk-in closet. The expansive backyard on a 12,400+ sqft lot is perfect for entertaining, with covered and pergola patios, artificial turf, a built-in BBQ, and a custom storage shed with AC. Energy-efficient features include spray foam insulation, ENERGY STAR appliances, a programmable thermostat, and Low-E2 vinyl windows. With easy access to the freeway, close proximity to Arrowhead, and located in an excellent school district, this RV-approved home has it all!

1232 E Oregon Avenue Phoenix, AZ 85014

$1,100,000 - 4Br/3Ba -  for Sale in Marow Homes, Phoenix
New
$1,100,000
4 Beds
3 Baths
2,551 SqFt
Status Active
MLS # 6761074
Property Type Single Family Residence
Price Type --
Absolutely gorgeous and 2016 remodeled North Central home with an addition, plus private pool and spa! Featuring a single-level open concept floor plan with 4 BDR, 3 BTH, 1C garage with epoxy floors, and multiple indoor/ outdoor living spaces -- including a front courtyard, side yard patio, and resort-style backyard. All plumbing, as well as the main plumbing line to sewer, was installed in 2016. New roofing, electrical wiring and panel, LED lighting, new insulation (including interior walls), dual pane/ low-E windows were all installed in 2016, and new HVAC units were installed in 2016 & 2019. The gourmet kitchen features Brazilian quartzite counters, large center island with breakfast bar, Whirlpool stainless steel appliance pkg. with gas stove and double ovens, huge walk-in pantry, and opens to the family room + dining room. The luxurious primary bedroom suite boasts an oversized shower, soaking tub, dual vanities, private water closet, separate exits to both the backyard and side yard patio, and spacious walk-in closet. The home's resort-style backyard features an expansive grassy-play area, large covered patio, private pool and spa with waterfall, poolside seating area, frameless glass pool fencing, outdoor shower, and mature landscape. Owned solar panels (5.015 kw system) make this home complete with additional energy cost savings, while contributing to a cleaner environment. Located in the heart of Phoenix, this area offers convenient access to major freeways like the I-10 and SR-51, making commutes to downtown Phoenix, Scottsdale, and other key destinations quick and easy. Also located nearby and within the Madison Elementary School District, is Madison Traditional Academy (preschool - 8th grade) an open enrollment school that offers an advanced and accelerated curriculum for students. Home is just minutes' drive away from popular dining spots and boutique shops along 7th Street, the Camelback Corridor, and Uptown Plaza offering a variety of culinary delights and local retailers (Postino Central, The Gladly, West Elm, Frances Boutique, Shake Shack, Lou Malnati's Pizzeria, AJ's Fine Foods, Culinary Dropout, The Yard, and Ocotillo).

2100 N Southern Hills Drive Flagstaff, AZ 86004

$1,100,000 - 3Br/2Ba -  for Sale in Continental Country Club Estates 3, Flagstaff
New
$1,100,000
3 Beds
2 Baths
2,475 SqFt
Status Active
MLS # 6761405
Property Type Single Family Residence
Price Type --
This beautiful home in Continental Country Club, on the 16th Fairway includes 3 oversized bedrooms and a Den/Office (that could be used as a 4th Bedroom). Large windows overlooking the back covered patio and golf course. Amenities include the Clubhouse, community pool, pickleball courts and Bear Paw. Minutes from Downtown Flagstaff and numerous restaurants. THIS HOME IS A DEFINITE MUST SEE!

7212 W John Cabot Road Glendale, AZ 85308

$1,100,000
3 Beds
2 Baths
2,139 SqFt
Status Active Under Contract
MLS # 6696643
Property Type Single Family Residence
Price Type --
Complete down to the studs renovation (appx 75% new construction), this prime secluded estates home boasts modern finishes and unparalleled craftsmanship. Situated on just under half an acre, enjoy the convenience of Arrowhead Mall and Peoria P83 entertainment district amenities nearby. Features include an oversized garage, raised exterior walls for a modern look, massive rear patio, new stucco with synthetic top coat and 16' RV Gate. Inside, revel in the luxury of Sollid ENVII frameless cabinets, Quartz Counters, large format tile flooring, and Kitchenaid appliances. Stay comfortable year-round with a top-of-the-line Mitsubishi ductless HVAC system and enjoy energy-efficient living with spray foam insulation throughout. With a renovated pool, new paver patios, and (see supplement) security features like Ring Pro 2 doorbell and cameras, this home offers both luxury and peace of mind. Home is currently a successful AirBnB and may be purchased fully furnished.

18020 N 65th Place Phoenix, AZ 85054

$1,100,000
3 Beds
3 Baths
2,292 SqFt
Status Active Under Contract
MLS # 6745224
Property Type Single Family Residence
Price Type --
Welcome to your dream home at Paradise Ridge a gated community on the border of North Phoenix and Scottsdale. Nestled in a highly sought-after neighborhood, this home epitomizes luxury living and convenience. A stunning single-level residence, perfectly sized at 2,292 square feet, with 3 bedrooms plus an office/den and 3 bathrooms meticulously designed and upgraded throughout. As you step inside, you're greeted by an open floor plan that seamlessly integrates the living, dining, and kitchen areas. The spacious living room, adorned with large windows and an oversized sliding door floods the space with natural light creating a warm and inviting ambiance. The gourmet kitchen featuring stainless steel appliances, gas cooktop, gorgeous granite countertops, a generous island with storage and ample cabinetry, perfect for hosting and entertaining. The primary suite is a serene retreat, complete with a walk-in closet with pass through to laundry room, and an en-suite bathroom with dual vanities, private commode, and an oversized shower. Two generously sized guest bedrooms and two well appointed bathrooms plus a stylish den round out the living space. Step outside to the beautifully landscaped backyard, an oasis perfect for relaxation and entertainment. The covered patio provides an ideal spot for outdoor dining, while the beautiful Palo Verde tree provides plenty of shade. Low maintenance plantings and an automatic watering system ensure your landscaping looks wonderful year round. Paradise Ridge is a vibrant community that offers an array of amenities, including a sparkling community pool and spa, walking trails, and a playground. Located just minutes from shopping, dining, and entertainment options, and with easy access to major highways, this home ensures you're never far from everything the valley has to offer.

907 W Restin Road Phoenix, AZ 85086

$1,100,000
4 Beds
3 Baths
2,573 SqFt
Status Active
MLS # 6741259
Property Type Single Family Residence
Price Type --
Located on private street, this custom home was designed for comfort! Formal living and dining room features three way gas fireplace great for entertaining. Large kitchen has island, granite countertops and ample storage open to dining area and family room with built in entertainment center. Split floor plan with large master suite with private access to back yard large walk-in closet and spacious bathroom. Screened in patio looks out to spectacular back yard with large pool and pool house as well as custom bbq and fire pit. Four car garage has tandem bay for all your toys or great for workshop. Block wall surrounds property and separates large area of lot to keep your animals and toys! Minutes from schools, close to shopping, restaurants and trails.

6519 N 173rd Drive Waddell, AZ 85355

$1,100,000
4 Beds
3.5 Baths
3,160 SqFt
Status Active
MLS # 6737635
Property Type Single Family Residence
Price Type --
Looking for a peaceful retreat? This magnificent corner-lot property on a tranquil cul-de-sac awaits new owners! With excellent curb appeal, it features a desert landscape, a spacious 3-car garage, an extended driveway, a private courtyard, and striking stone detailing. The impeccably updated interior welcomes you with a lovely foyer, graceful archways, plantation shutters, beautiful wood-plank tile flooring, and decorative light fixtures. The formal living and dining rooms boast coffered ceilings and bay windows for easy entertaining. The spacious family room, adorned with a stone wall fireplace and Parquet flooring, seamlessly connects to the kitchen. Meticulous attention to detail is presented in the stunning kitchen, fully equipped with an electric cooktop, a wine cooler, wall ovens granite counters, a mosaic tile backsplash, recessed and pendant lighting, a breakfast bar, and a prep island. Alluring cherry wood cabinetry with crown molding and a walk-in pantry provide ample storage space. The grand main suite is a true sanctuary, highlighting a double-door entry, tray ceilings, vanity spaces, a sitting area, outdoor access, and a full ensuite with a jetted tub, dual sinks, and a walk-in closet. Secondary bedrooms also enjoy their own bathrooms, including a Jack and Jill bathroom. Escape to the backyard paradise that invites you to unwind with a covered patio, a ramada, a fire pit, a grassy lawn, and a refreshing pool. Don't miss the opportunity to own this exquisite home - it's a perfect blend of elegance and comfort, ready for you to make it your own!

26627 N 104th Way Scottsdale, AZ 85262

$1,100,000
3 Beds
3 Baths
2,112 SqFt
Status Active
MLS # 6758295
Property Type Single Family Residence
Price Type --
Discover this fully furnished exquisite villa with Modern Farmhouse interior in the prestigious North Scottsdale area. This home beautifully combines contemporary elegance with rustic charm, featuring custom barn door and barn wood accents. Enjoy breathtaking views of Pinnacle Peak and Troon from multiple vantage points. The interior boasts a spacious, open-concept layout with high-end finishes throughout. The gourmet kitchen is equipped with Monogram appliances, perfect for culinary enthusiasts. The master suite offers a luxurious retreat with a large closet and spa-like bathroom. Additional highlights include a garage with epoxy floors and ample storage space. Located near Four Seasons Resort and Pinnacle Peak hiking trail, this home provides both luxury and maintenance free lifestyle.

23935 N 80th Drive Peoria, AZ 85383

$1,100,000
4 Beds
3.5 Baths
2,879 SqFt
Status Active
MLS # 6725146
Property Type Single Family Residence
Price Type --
Welcome to your new home! This 4 bed 3.5 bath has vaulted ceilings throughout, large open, split floor plan, and a resort style backyard. New HVAC! Plenty of natural light, walk in pantry, huge built in BBQ, and outdoor gas fire pit. Plenty of yard space for kids to play and a resort style pool with a table to sit around. The additional 3 car garage/shop is perfect for the car enthusiast! Bonus room with full bath is great for a man cave, game room, she shed, or convert to an additional bedroom! The home also features solar for low cost utilities. Low property taxes. $4381 in 2023. Located in a quiet culdesac, this gated community of Eagle Canyon feels like home. You don't want to miss this one!!

9497 E Corrine Drive Scottsdale, AZ 85260

$1,100,000
4 Beds
2 Baths
2,329 SqFt
Status Active Under Contract
MLS # 6749176
Property Type Single Family Residence
Price Type --
Magnificent remodeled home in the heart of Sweetwater Ranch. Just bring your toothbrush. New roof, kitchen, floors, heat pumps, water softener, bathrooms, hot water heater, and more. 4 bedrooms and 2 baths and a 3 car garage. The Landscaping was redone and the pool remodeled. Experience what life can offer in the Cactus corridor. Close to schools, shopping and the 101 freeway.The new custom front door is just the start of this perfect gem.

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