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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1495 W Camino Drive Wickenburg, AZ 85390

$950,000
3 Beds
2 Baths
3,355 SqFt
Status Active
MLS # 6741021
Property Type Single Family Residence
Price Type --
A Dream come true with this HOLE in ONE! The ''Ranch Style'' home boasts timeless CHARM with a modern flare. The 3 bedroom/2 bath 3355 sq ft. home offers an open floorplan, cozy fireplace, game room, office, and a quaint family room. From the LUXURY PRIMARY suite, enjoy the sparkling diving pool, jacuzzi. and a private patio entrance. Meander through the breezeway and extensive covered porches to enjoy the ENTERTAINERS DELIGHT including a spacious GUEST home(549sq ft). The solar panels and 4 separate climate zones provide money saving power for year-round comfort! BONUSES continue...2 car garage, detached 2 car shop with AC, barn, HIDDEN 122 sqft MOSLEY bank VAULT. All this on 2.78 HORSE PROPERTY, MOUNTAIN VIEWS, just a short ride to golf and miles of WICKENBURG TRAILS and TREASURES!

1301 E Sheridan Street Phoenix, AZ 85006

$950,000
3 Beds
2 Baths
2,600 SqFt
Status Active
MLS # 6743525
Property Type Single Family Residence
Price Type --
VERY RARE HISTORIC OPPORTUNITY! This amazing home has all the intangibles and charm a house should have starting with being registered as a Class 6.1 owner-occupied historic home with a 50 % tax reduction. The main 1925 house was seamlessly upgraded with additional permitted sq. footage to include a whole new wing of the house in 2014 with a fantastic primary bedroom, bathroom, family room, laundry room, and AN AMAZING BASEMENT. BEAUTIFUL LAP POOL. Electric gate for privacy, large oversized 1 car garage. SMART TECHNOLOGY UPGRADED to include surround sound throughout the house, Wifi thermostats, Wifi garage and gate, Kasa lighting app, 8 security cameras, & Rachio drip system. Meticulously maintained with mature landscaping, this is definitely A MUST SEE! A TRUE CORONADO DREAM HOME!

265 W Mountain Sky Avenue Phoenix, AZ 85045

$950,000
4 Beds
2 Baths
2,633 SqFt
Status Active
MLS # 6748898
Property Type Single Family Residence
Price Type --
Welcome to the best of luxury mountain side living! One of few homes situated within Ahwatukee's prestigious Dove Canyon! Bright and open floorplan and stunning updates throughout the home. Enjoy your dream entertainers backyard and gaze at the breathtaking mountain preserve and sunset views over the Estrella Mountains. RV gate, extended 24' deep 3-car garage, pool, built-in hot tub, built-in grill and more! With over $300k in upgrades this gorgeous home is a dream for anyone looking for peaceful luxury living in the desert. One of the most private backyard settings in Ahwatukee, with spacious side yards and an adjacent wash. Close to hiking trails for outdoor adventures!

6624 N 20th Street Phoenix, AZ 85016

$950,000
3 Beds
2 Baths
2,872 SqFt
Status Active
MLS # 6750573
Property Type Single Family Residence
Price Type --
A SANCTUARY RETREAT directly in front of Granada Park, this partially updated Mid Century ranch home offers the buyer to add his or her personal touch. The heart of the home is the kitchen, featuring a Sub-Zero refrigerator, granite countertop, walk-in pantry, and a spacious island with range, and a bar area, perfect for entertaining. The upstairs master suite includes a walk-in closet and breathtaking views of Piestewa Peak and the city skyline. The family room boasts high ceilings, skylights, and sliding glass doors that open to a lush backyard with mature trees and shade on a third of an acre. Enjoy the saltwater pebble tec pool with water features and a new pool pump. Outdoors is a 500 sq. ft. art studio with water and A/C that provides a private retreat for your creativity

28 E Hoover Avenue Phoenix, AZ 85004

$950,000
3 Beds
2 Baths
1,498 SqFt
Status Active
MLS # 6752849
Property Type Single Family Residence
Price Type --
ASHLAND PLACE GEM! This charming craftsman bungalow, listed on the National Register of Historic Places, seamlessly blends classic original charm with modern conveniences. Admire its timeless curb appeal and spacious front porch. Step inside to find meticulously preserved original hardwood floors, built-in features, and elegant archways. The thoughtfully designed layout leads to a fully renovated kitchen boasting stone countertops, new cabinetry, and stylish tile accents. Bathrooms have undergone stunning renovations for both form and function. Outside, enjoy the lush backyard with an elegant heated pool - perfect for AZ outdoor living, along with a one-car garage. Nestled in the vibrant MIDTOWN ARTS DISTRICT, this home offers easy access to the light rail, restaurants and museums.

8132 E Jackrabbit Road Scottsdale, AZ 85250

$950,000
4 Beds
2 Baths
1,980 SqFt
Status Active
MLS # 6754155
Property Type Single Family Residence
Price Type --
Beautifully remodeled 4bed/2bath home in the heart of Scottsdale. This NO HOA, single level home with split floor plan & attached 2 car garage has been completely updated. Kitchen features leathered Taj Mahal single slab quartzite island, all New GE Cafe appliances with gas stove conversion . New custom cabinets and wine fridge. New flooring throughout house. Luxurious master retreat with custom bath & closets. New landscaping & lawn with outdoor accent lighting. New irrigation front and back yard and new landscaping with citrus trees. New Aluminum sunshades with electrical & fans front & backyard. Family friendly neighborhood, close to Scottsdale Pool, Chaparral Lake, walking trails, playground, soccer fields & dog park. Close to old town shopping and dining. This home will impress!

30142 N Suscito Drive Peoria, AZ 85383

$950,000 - 3Br/4Ba -  for Sale in Trilogy West Phase 1 Parcel C40, Peoria
New
$950,000
3 Beds
3.5 Baths
2,771 SqFt
Status Active
MLS # 6762703
Property Type Single Family Residence
Price Type --
Simply stunning home located in the upscale active adult community of Trilogy in Vistancia where you will find athletic clubs, aerobics studio, indoor Olympic pool, outdoor resort pool, stunning golf course and Alvea Spa! Your new home has a commanding presence with stacked stone accents leading to a serene courtyard entrance. Step inside to open concept living with a den/sitting area opposite the great room with coffered ceilings, recessed lighting, beautiful flooring and loads of natural lighting. Spectacular kitchen with a stainless steel hood that features prominently along with tiered and raised white designer cabinets, granite counter tops, stainless appliances, subway tile backsplash and a large island with seating. Great spot for a breakfast table as well as a separate room that can be used as a formal dining as it has fantastic built in cabinetry. So many options! Amazing master bedroom where you will find a wonderfully modern en suite bath featuring a fabulous oversized glass enclosed step in shower, sleek soaking tub, dual vanities and walk in closet. Two additional bedrooms both with en suite baths as well as a large laundry room complete the interior of this very special home. Premium outdoor living with a large trellised covered patio anchored by a stand out stacked stone fireplace. Lush landscaping encompasses the entire yard making it your own private oasis. Motorized shades enclose the entire patio! Pre paid solar lease in place from the original builder. There is so much to love about this home - make sure you don't miss it.

10797 N 108th Way Scottsdale, AZ 85259

$950,000 - 4Br/2Ba -  for Sale in Paradise Vista Estates, Scottsdale
New
$950,000
4 Beds
2 Baths
2,010 SqFt
Status Active Under Contract
MLS # 6762251
Property Type Single Family Residence
Price Type --
Discover this newly remodeled, charming home in Scottsdale, perfectly situated at the end of a quiet cul-de-sac on one of the largest lots in the community. The spacious great room features soaring ceilings and a stunning 10-foot island, ideal for entertaining. Enjoy your newly resurfaced pool, perfect for relaxation and fun. No detail has been overlooked—new paint, cabinets, plumbing, doors, windows, and HVAC ensure a fresh, modern feel. Plus, you'll be close to all that Scottsdale has to offer, from Barrett Jackson and MLB Spring Training to premier golf, shopping, and dining. With no HOA, this home is a rare find in a vibrant community. Experience the best of Scottsdale living!

8940 N 83rd Street Scottsdale, AZ 85258

$950,000
3 Beds
2 Baths
2,130 SqFt
Status Active
MLS # 6732394
Property Type Single Family Residence
Price Type --
Welcome to this stunning 3-bedroom, 2-bathroom home nestled in this amazing McCormick Ranch location! This intimate residence offers the perfect blend of modern updates and timeless charm. Situated on a corner lot with a lush greenbelt commencing right behind the home, it's within walking distance to a scenic lake and an array of fantastic restaurants. As you approach, you'll be greeted by a gated front courtyard that sets the stage for the home's exquisite blend of Ranch, Spanish, and Contemporary architectural styles. Step inside the spacious great room, where the newly remodeled fireplace immediately catches your eye, adding a touch of elegance and warmth to the space. The vaulted ceilings, beams and skylights enhance the bright, open feel of the room, flooding it with natural light. The fully functional, remodeled kitchen is a chef's dream. The kitchen features a breakfast bar, walk in pantry, and a strategically placed, brand-new 30-inch in-drawer microwave. The kitchen seamlessly blends style and convenience, perfect for preparing meals and entertaining guests. The bathrooms have been thoughtfully remodeled with a Zen flair, offering a serene and spa-like atmosphere. The attention to detail continues in the backyard, where a new block tier planter along the exterior wall accommodates an abundance of new Ficus trees, creating a private and tranquil oasis. The addition of automatic exterior sun/screens further enhances convenience and privacy. The backyard is an entertainer's paradise, complete with a built-in BBQ, gazebo/ramada, and a private patio area. Whether you're relaxing by the pool and spa or hosting a barbecue, this space is perfect for enjoying Arizona's beautiful weather. This home's prime location, combined with its modern updates and fantastic amenities, offers an exceptional living experience at a great price. Don't miss out on this incredible opportunity!

9945 E Strobe Avenue Mesa, AZ 85212

$950,000
4 Beds
4.5 Baths
3,457 SqFt
Status Active
MLS # 6679950
Property Type Single Family Residence
Price Type --
Welcome to your dream home in the heart of Eastmark! This stunning single-story residence sits on an oversized lot, offering ample space for relaxation and entertainment. Boasting 3457 square feet of living space, this home features 4 bedrooms and 4.5 baths providing comfort and privacy for the whole family. Step into the breathtaking courtyard, adorned with double doors, inviting you into a space of elegance and comfort. The great room boasts vaulted ceilings, creating an airy ambiance ideal for relaxation or entertainment. The entertainer's kitchen, complete with a morning kitchen nestled within an oversized walk-in pantry, seamlessly flows into the adjacent dining room, perfect for hosting gatherings of any size. Designed for ultimate comfort and privacy, the split floor plan features a luxurious primary suite complete with a spa-like master bath featuring his and her sinks, a soaker tub, and an oversized tile shower. On the opposite wing, discover an office space, three generously sized bedrooms, three full baths, and a versatile teen room, offering ample space for every member of the household. Step outside into the backyard oasis, where entertainment awaits with a large pool and an indoor-outdoor sliding wall, seamlessly blending the indoors with the outdoors. Whether relaxing poolside or hosting lively gatherings, this backyard retreat is sure to impress. Welcome home to a perfect blend of luxury, comfort, and entertainment possibilities.

20970 E Excelsior Avenue Queen Creek, AZ 85142

$950,000
4 Beds
2 Baths
2,950 SqFt
Status Active Under Contract
MLS # 6659926
Property Type Single Family Residence
Price Type --
Welcome to this stunning home located in the highly sought-after community of Orchard Ranchettes. This 4-bedroom, 2-bathroom home sits on a premium lot and boasts over 2,950 square feet of living space. Upon entering, you'll be greeted by an open and spacious floor plan, featuring soaring 10-foot ceilings, beautiful tile flooring, and plenty of natural light. Custom alder cabinets, alder beams, white-washed barnwood accents, and recessed lighting add a warm but classy atmosphere. The gourmet kitchen is a chef's dream, complete with granite countertops, black stainless steel GE profile double convection oven, built in microwave and dishwasher as well as refrigerator. Two pantry locations for convenience! MORE.. The master suite is a true retreat, featuring 2 closets and a luxurious en-suite bathroom with dual copper vanities, a soaking tub, and a floor to ceiling tiled walk-in shower. Custom barn door provides privacy to en-suite from bedroom. The 3 additional bedrooms are generously sized and share a full bathroom on the other side of the home. Outside, you'll find a professionally landscaped backyard oasis, complete with pool & above ground spa, perfect for entertaining or relaxing with family and friends. The pool is equipped with a commercial grade heat pump to keep your pool at refreshing cool temps in the summer and heated in winter if you so choose! Installation of the heat pump included a new sand filter and complete pool filter replumbing. A new Hayward TracVac pool cleaner ensures a crystal clear pool! Programmable exterior and interior lighting, Nest thermostats, Ring doorbell system and driveway security camera all convey. There is also ethernet wiring throughout. Both HVAC systems only 1.5 years old. Just behind the RV gate boasts 2 16 x 8 site built sheds that convey with the property. Additional fencing was added to complete a full pasture with two gate access, including one from the covered stall area where you can jump on the bridle path and connect to the Sonoqui Wash Trail! There's plenty of room to add a round pen if you wanted to as well. . Irrigation is managed and operated by the City of Queen Creek. If you don't need a horse setup, you'll have an approximate 90' by 154' area to build an RV garage, a guest house or create your own park like playground! Horses & chickens are allowed in this community! The large three car garage is insulated and has lots of cabinets to hold your tools and accessories. FRESH NEW COLOR PAINT ON EXTERIOR AS OF MAY 2024 AS WELL AS NEW CARPET IN ALL BEDROOMS EXCEPT PRIMARY SUITE. The community boasts a park as well! You can ride your golf cart or horse around in this neighborhood! Don't miss your chance to own this amazing home. A little of country & a little bit of small-town Queen Creek welcomes you!

6226 E Earll Drive Scottsdale, AZ 85251

$950,000
3 Beds
2 Baths
1,951 SqFt
Status Active
MLS # 6748005
Property Type Single Family Residence
Price Type --
Come see this stunning renovated home in the heart of Scottsdale offering outstanding location! This 3 bedroom and 2 bathroom home surely will not disappoint as everything has already been done for you from floor to ceiling! The open floor plan is perfect for entertaining or just everyday living, providing the best of both worlds. Outback enjoy the beautiful heated pool, turf and covered patio for endless fun. The home was remodeled a few years ago with new flooring, cabinets, counters and so much more! New roof and exterior paint. NO HOA. Come see while it last!

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