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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6803 E Main Street Unit 4407 Scottsdale, AZ 85251

$850,000
2 Beds
2.5 Baths
1,622 SqFt
Status Active
MLS # 6749449
Property Type Apartment
Price Type --
Welcome to The Mark in Old Town Scottsdale and this amazing 1622 square foot home. This condominium has 2 large bedrooms, each with ensuite bath and a spacious walk-in closet. Every room in the home has a view of the Papago or McDowell Mountains. Stone tile throughout contributes to a spacious feel. In addition, there is a sizeable laundry room, powder room and plenty of closet space. The updated kitchen includes a Wolf gas store and GE Monogram appliances. The Mark has recently beautifully updated the rooftop pool, spa, outdoor kitchen and entertainment areas. The Mark is currently working on plans to remodel the on-site workout facility and the main lobby. This is one of the best locations in Old Town, in walking distance of plenty wonderful restaurants and entertainment.

6375 N 175th Avenue Waddell, AZ 85355

$850,000
3 Beds
2 Baths
1,750 SqFt
Status Active
MLS # 6754959
Property Type Single Family Residence
Price Type --
This exceptional 2023 custom-built home redefines luxury living with meticulous craftsmanship. Nestled on over an acre with flood irrigation, the property offers versatile outdoor potential. Custom 2x6 framing construction AND plywood sheathing, this home guarantees durability and long-lasting structure integrity. Equipped with spray foam insulation, the residence ensures superior energy efficiency. The heart of the home is the kitchen, a true culinary masterpiece. Exquisite Brazil Quartzite countertops, natural beauty with remarkable durability. Spacious living environment but also offers a canvas for a variety of outdoor activities and enhancements. Quality, modern design, and functionality harmoniously blend to create an extraordinary living experience. Request Property Feature List. Home includes a 10x20 custom shed, can be used for car storage. Custom Carport aslo accomdate cars or trucks. High-end appliances complete the kitchen, providing the tools and technology needed to create gourmet meals and entertain with style. The thoughtful design extends to the three bedrooms and two bathrooms, offering a harmonious balance of comfort and sophistication. Each space is carefully curated to enhance your daily living experience, providing a retreat that reflects the attention to detail put into every aspect of the home. This property isn't just a residence; it's a testament to quality, craftsmanship, and the pursuit of a refined lifestyle. With its unique features, high-end finishes, and expansive acreage, this home invites you to experience a new standard of living. Make it yours and embrace the epitome of modern luxury. Discover a home that goes beyond the ordinary, presenting an exquisite custom-built residence completed in 2023. Situated on over an acre of land with irrigation capabilities, this property offers a unique opportunity for spacious living and versatile outdoor use. Constructed with precision and quality in mind, the home. Step into the heart of the home, where the kitchen stands as a culinary masterpiece. Quartzite countertops, sourced from Brazil, elevate the space with their natural beauty and resilience. High-end appliances complete the kitchen, providing the tools and technology needed to create gourmet meals and entertain with style. The thoughtful design extends to the three bedrooms and two bathrooms, offering a harmonious balance of comfort and sophistication. Each space is carefully curated to enhance your daily living experience, providing a retreat that reflects the attention to detail put into every aspect of the home. This property isn't just a residence; it's a testament to quality, craftsmanship, and the pursuit of a refined lifestyle. With its unique features, high-end finishes, and expansive acreage, this home invites you to experience a new standard of living. Make it yours and embrace the epitome of modern luxury.

13135 W Baker Drive Peoria, AZ 85383

$850,000
2 Beds
2.5 Baths
2,366 SqFt
Status Active
MLS # 6741680
Property Type Single Family Residence
Price Type --
One-of-a-Kind SOLAR Chroma floor plan to hit the market! Situated on PRIME PROPERTY w/ a SOUTH BACKYARD - separation from neighbors and adjacent to expansive landscape tract & GREEN BELT!! Fully Fenced Back YARD creates extreme PRIVACY! 2 Bed, 2.5 Baths, Den, Smart Space & HIDDEN BONUS ROOM - IMPRESSIVE!! Step inside and you'll fall in love w/ this OPEN GREAT ROOM PLAN w/ an abundance of NATURAL LIGHT due to OVERSIZED WINDOWS & being located next to OPEN SPACE!! GORGEOUS TILE thru-out the entire home. Stunning KITCHEN features; espresso-stained cabinets w/ large CROWN MOLDING, GRANITE w/ LEATHER FINISH, SS BUILT-IN GAS APPLIANCES w/ SS HOOD VENT, BUILT-IN FRIDGE, roll-outs & soft-close drawers! Owners suite is EXTENDED & Both Baths are UPGRADED to the HILT. Shhh, HIDDEN ROOM is behind CUSTOM BUILT-IN CABINETRY - WOW!! Home features a POWDER ROOM. Step outside to paradise - enjoy an EXTENDED PATIO w/ TRAVERTINE PAVERS, Gas FIRE PIT, lounge area w/ TV & AUTOMATED SCREEN that runs the length of the patio - this home is spectacular!! Additional features: OVERSIZED Garage w/ epoxy floors, cabinets & storage, garbage enclosure, sink in the laundry room, soft water, RO, custom lighting, add'l can lighting, Central Vacuum, Custom Closet at Master and so much more!!

9191 E Nittany Drive Scottsdale, AZ 85255

$850,000
2 Beds
2 Baths
1,542 SqFt
Status Active Under Contract
MLS # 6721218
Property Type Single Family Residence
Price Type --
Location Location Location! Move-In Ready ! This Gorgeous, Mountain View home truly has it all without a detail spared. This open floor plan home has been recently remodeled, including a 11 ft kitchen island, built in wine fridge, microwave drawer, Sleek LG Appliances . Plenty of space for you and your family to entertain or relax, in the resort style backyard or breakfast nook looking out over the McDowell Mountains. Low maintenance backyard and landscaping. 2 electric car chargers in the Garage & RO System included! See it Today before it's too late!

32313 N 16th Lane Phoenix, AZ 85085

$850,000
4 Beds
2.5 Baths
3,122 SqFt
Status Active
MLS # 6756171
Property Type Single Family Residence
Price Type --
Stunning TW Lewis home in a quiet, gated community in Sonoran Foothills. Stylish and functional floor plan with plenty of space to live, work and entertain. Warm neutral finishes, custom maple cabinetry, granite counters and plantation shutters throughout. Gourmet kitchen abuts den with stacked stone fireplace. Separate area for dining room if desired. Huge primary suite with walk-in closet, 3 additional bedrooms plus a large bonus space. Garage has epoxy floors and cabinets. An intimate courtyard upon entry and a spacious backyard with gorgeous desert views. Property backs to a wash making it very private and serene. Extensive walking, hiking and biking trails from your front door. Community amenities include parks, basketball, volleyball, tennis, pickleball, pool, spa and splashpad. Easy access to I17 and 303.

5422 E Piping Rock Road Scottsdale, AZ 85254

$850,000
3 Beds
2 Baths
2,257 SqFt
Status Active Under Contract
MLS # 6759143
Property Type Single Family Residence
Price Type --
Welcome to this exceptional home, where a stunning courtyard and grand ten-foot wrought iron glass door invite you into a truly unique living experience. Nestled in a rare 22-home gated HOA subdivision within the highly coveted 85254 zip code, this property offers the perfect balance of privacy and convenience. The community's tennis court adds to the appeal, and you'll find yourself just five minutes from premier shopping destinations like Kierland Commons, Scottsdale Quarter, and the soon-to-be remodeled Paradise Valley Village, making this an even more desirable location. With quick access to both Highway 101 and Highway 51, commuting to work or reaching Phoenix Sky Harbor Airport takes 20 minutes or less. Plus, Horizon High School is right around the corner, enhancing the neighborhood's attractiveness. Inside, the home boasts an open great room floor plan with polished Travertine floors, French exits, privacy roller shields throughout, and a cozy fireplace, perfect for both everyday living and entertaining. The gourmet kitchen, featuring stainless steel appliances, tall Cherry cabinetry, granite countertops, a pantry, and a stylish stone backsplash. The king-sized master suite offers two spacious walk-in closets and a private terrace with gorgeous views. Both bathrooms are beautifully appointed with granite countertops and tiled showers. The guest bedroom includes its own private entrance, while the third bedroom is currently set up as a office, providing flexibility for your lifestyle needs. Outside, a sparkling PebbleTec pool with boulder water features awaits, complemented by a refinished Cool Deck, lush landscaping, and low-maintenance updated turf. Recent upgrades include newer AC units (upstairs and downstairs), a brand new installed roof, a refinished pool and Cool Deck, resealed Travertine tile throughout the home, and more. Don't miss this rare opportunity to own a one-of-a-kind home in a one-of-a-kind community.

3946 W Morrow Drive Glendale, AZ 85308

$850,000
4 Beds
2 Baths
2,177 SqFt
Status Active
MLS # 6746673
Property Type Single Family Residence
Price Type --
*IRRIGATED* *LIVE STOCK PRIVILEGES* *HORSE PROPERTY & TRAILS* This exceptional 4-bedroom, 2-bathroom horse property with irrigation on nearly an acre offers the perfect blend of rural charm and contemporary amenities. The 2,177 sqft home boasts a thoughtful split floor plan, Pergo flooring, and fresh interior paint. Each bedroom is equipped with a mini-split for personalized comfort. The primary suite features a private exit to the backyard, dual vanity, and a walk-in shower. Step outside to enjoy a custom block wall with intricate ironwork, added in 2022, and unwind in your hot tub. The property includes a 1600 sqft, 4-car shop with an office, ¾ bath, separate septic, AC, and 220 electricity—perfect for hobbyists or commercial business. Complete with car lift!!!! Additional highlights include a tankless water heater and water softener installed in 2023, a propane dryer, water heater, and fireplace, and a 2-car garage with insulated doors. All this with no HOA restrictions! Embrace the freedom and space you've been searching for in this move-in ready oasis.

21457 E Caldwells Way Queen Creek, AZ 85142

$850,000
4 Beds
3 Baths
3,030 SqFt
Status Active
MLS # 6761999
Property Type Single Family Residence
Price Type --
Gorgeous single story home in Hastings Farm. Situated on an oversized premium lot. This home has it all! Starting with the impressive wrought iron entry that leads to your private courtyard. 4 bedrooms, 3 baths, a den and game room. Next is the gourmet kitchen, GE SS appliances, walk in pantry, granite countertops and storage galore. Great room flows perfectly to the patio and picturesque backyard. Private pool, lush landscaping including several citrus trees, perfect for entertaining! Master suite is spacious with a massive master closet, dual sinks, separate tub and shower. 3 car tandem garage w/ tons of storage. RV gate, plantation shutters, builtins, energy efficient home, N&S exposure, updated light fixtures. Your clients will love it!

14922 E Dale Lane Scottsdale, AZ 85262

$850,000
4 Beds
2 Baths
2,242 SqFt
Status Active Under Contract
MLS # 6755436
Property Type Single Family Residence
Price Type --
Incredible 1.25-acre ranch with well water, resort backyard, privacy, mountain views, and horse set-up including 3 turnouts & exercise arena. Enjoy the beauty of the Sonoran desert and painted sky sunsets on this large property that is completely fenced. Custom home with no interior steps and a desirable floorpan including great room, split master & 4 bedrooms. Beautiful backyard with large tiled covered patio that overlooks the tropical pool/spa with water features. 3-car garage with wall of cabinets. Many recent improvements include new roof (2020), ext. paint (2022), pool filter (2024), pool pump (2021), well tank (2022), oven/range (2023), dishwasher (2023), washer/dryer (2023). The home sits on Dale Ln (unpaved) just one property away from paved roads (Rio Verde to 150th St). No HOA. With smooth drywall and pine doors, this is not a cookie-cutter tract home. Surrounded by hiking trails, Rio Verde Foothills is an unusual area where homes were built on larger lots, so there is the opportunity for seclusion and privacy, but there is also a community feel as neighbors enjoy morning and evening walks to catch the glorious sunsets. Furniture available on separate bill of sale.

1803 N Harper -- Mesa, AZ 85207

$850,000
3 Beds
2.5 Baths
2,372 SqFt
Status Active
MLS # 6750678
Property Type Single Family Residence
Price Type --
This gorgeous home is located in Canyon Preserve at Moutain Bridge. The premium lot, with no direct neighbor to the back and Tanto National Park mountain views, offers privacy and a peaceful setting. Top-of-the-line curb appeal with a paver driveway and walkways, as well as desert landscaping and artificial turf. A three-car tandem garage with industrial-grade epoxy flooring and garage cabinets provides plenty of space for vehicles and storage. It is climate-controlled with backyard access. Enter the arched wrought iron security gate entrance to the private front patio. The home has new Luxury Vinyl Plank flooring, plantation shutters and two tones of interior paint. The kitchen is an entertainer's dream, with stainless steel appliances, a gas range, white maple cabinets with Nantucket doors, granite countertops, and an island. The great room has an additional 300 square feet with a 20' wall of glass with a drop-down screen leading to the backyard, a private pool that is heated and cooled, and a cool deck patio. The primary bedroom is split with an ensuite bathroom with dual sinks, vanity, large walk-in shower and oversized closet. So many more upgrades are included on the additional upgrade list.

15048 E Sierra Madre Drive Fountain Hills, AZ 85268

$850,000
3 Beds
2 Baths
2,313 SqFt
Status Active Under Contract
MLS # 6738324
Property Type Single Family Residence
Price Type --
Stop the car!! Here's the perfect single level custom home in desirable North Heights! Sitting on an elevated lot this attractive home is just what you're looking for. Enter into the large/bright & open great room with wood burning fireplace /skylights and a view straight out to the back yard with sparkling pool. You'll love the kitchen with tons of cabinets and counter space/Granite counters/wine fridge/stainless appliances/double oven/large island with seating and a breakfast bar area too! The large master suite is a great retreat with an exit to the yard/big walk in closet/Bath with separate tub & shower/ 2 more bedrooms plus a den/office / Nice laundry room with cabinets & sink/ 3 car garage! Plantation shutters/Don't miss this great home!

7720 N 181st Avenue Waddell, AZ 85355

$850,000
3 Beds
2 Baths
2,024 SqFt
Status Active
MLS # 6753868
Property Type Single Family Residence
Price Type --
Rare find! 2 acre horse property only minutes from Hwy 303!You'll know it's special as you drive up to the expansive front lawn and then see the welcoming front porch! The 3 bed 2 bath home w/split floor plan, living room, vaulted ceilings,ceiling fans,family room with dining area, eat in kitchen w/corian counters. Primary en suite bedroom w/step in shower and walk in closet-slider to back patio! Huge 2nd bedroom! Nicely sized 3rd bedroom-great for home office. 2 garages! Everything you'll want outside too- covered patio, separate pergola covered BBQ area,fenced yard, fully fenced pasture, lighted arena, covered stall/tack area w/water and power, flood irrigation.

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