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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9818 N 17th Street Phoenix, AZ 85020

$800,000
3 Beds
2 Baths
2,834 SqFt
Status Active
MLS # 6704850
Property Type Single Family Residence
Price Type --
BACK FROM TOM Freshly painted exterior paved walking path to your new home; Come discover this hidden GEM!! Artsy District in Ocotillo Hills Nestled in an incredible mountain range community. This stunning property with a beautiful setting! The combination of mountain views, designer walls, and outdoor amenities like a pool and outdoor shower creates a truly captivating atmosphere. The interior features such wood beams, brick walls with a fireplace adds a touch of elegance and charm to the home, making it a cozy and welcoming space.The spacious layout and various splits in the home offer flexibility and room for personalization to suit different lifestyles. Overall, it seems like a unique and artsy home that has a lot to offer to those looking for a special living experience.

20520 E Mockingbird Drive Queen Creek, AZ 85142

$800,000
3 Beds
3 Baths
2,881 SqFt
Status Active
MLS # 6671896
Property Type Single Family Residence
Price Type --
Elegant 3 bedroom w/office, 3 bathroom single story with an amazing sparkling pool, tall 10 foot ceilings and open floor plan with so much light! Beautiful gourmet kitchen with granite counters and gas cooktop is ideal for displaying cooking events. The kitchen flows into the central family room with an added dining area overlooking the backyard oasis. Tile in the walkways and durable laminate in the kitchen and bathrooms. Sonos speaker system in the family room and in the perfectly placed bonus room where you can easily fit a solid pool table or anything you want. Gorgeous backyard oasis with sparkling lounging pool, spa, artificial grass, and horseshoe pits. Pavered patio and walkways around the pool connect to the pergola-covered BBQ/kitchenette area with misters and electric sunscreen to keep the party extra cool. Block wall has been raised an extra 2 feet for more privacy and protection. Front yard has a private courtyard for patio furniture, winter fire pits, and more. You could have 3 different activities happening at the same time - this home is perfect for entertaining! There is an oversized laundry room that has extra cabinets and sink. 3-car tandem garage with plenty of storage racks and shelves, rain gutters for the monsoon seasons, holiday lighting and outlets placed around the outer roofline, 2 side yard sheds, and a 50 amp plugin next to the garage for the RV. The Queen Creek Station community maintains a large pool, basketball court, walkways, streetscapes, and parks. Costco, Walmart, and many popular restaurants, are within a 5 minute drive. Seven minutes to the 202 freeway can take you anywhere in the valley quickly.

2415 E Cochise Road Phoenix, AZ 85028

$800,000
4 Beds
2 Baths
2,284 SqFt
Status Active
MLS # 6719966
Property Type Single Family Residence
Price Type --
Welcome to this beautifully maintained & updated 4-bedroom, 2-bathroom home nestled in a serene neighborhood near the base of the Phoenix Mountain Preserve. This cherished home, built in 1970 and impeccably cared for by the original owners for 54 years, exudes a timeless charm and showcases meticulous upkeep. Key Features: Prime Location: Situated just south of Shea Boulevard and steps away from Trail 101, one of the area's most popular hiking trails, this home offers unparalleled access to outdoor adventure and stunning mountain views. Modern Upgrades: dual-pane windows throughout. Both bathrooms and the kitchen have been tastefully remodeled, featuring modern fixtures and finishes. Solar energy and natural gas keep expenses low. All the 70's dated issues have been improved - no sunken rooms, no popcorn ceilings, electricity is in all the ceilings plus pocket lights were added, all aluminum single pane windows were replaced with quality dual pane energy efficient windows. Interior Excellence: The home boasts a fantastic layout with a blend of new tile flooring and carpet in the right places. Curb Appeal: Nestled in a quiet, mature and beautifully maintained neighborhood with no HOA, this property features great curb appeal and a large .25-acre lot, perfect for gardening, entertaining, or simply enjoying the beautiful Arizona weather. Don't miss your chance to own this gem at the heart of one of Phoenix's most desirable neighborhoods.

2366 W Naranja Avenue Mesa, AZ 85202

$800,000
5 Beds
3.5 Baths
3,171 SqFt
Status Active
MLS # 6753631
Property Type Single Family Residence
Price Type --
This recently fully remodeled home with a full Mother-In-Law Suite has plenty of space, style and functionality! The separate Mother-In-Law Suite has its own full kitchen, living area, large bedroom, bathroom, walk in closet, separate entrance, and is accessible from the main house if desired. Think of all the possibilities! Sitting on a 1/4 acre corner lot within the highly rated Dobson Ranch Community, this home has many upgrades include new luxury cabinetry, quartz counter tops, fire clay farm sink, stainless steel appliances, new wood look plank flooring, new roof, new AC unit on En-Suite, updated landscaping, sparkling pebble tech pool, gazebo, basketball court, large covered patio, and much more. Located near 101 freeway, tons of restaurants, shopping, and nearby Tempe! Please Visit the Dobson Ranch Community Website to see a full description of all the amenities and benefits the Dobson Ranch Community has to offer! There are recreation centers, swimming, pools, pickle ball courts, lakes, and much more!

7199 E Ridgeview Place Unit 210 Carefree, AZ 85377

$800,000
3 Beds
3 Baths
2,544 SqFt
Status Active
MLS # 6750698
Property Type Apartment
Price Type --
Incredible opportunity to own this larger upper unit in Montacino. Complete with private elevator, sweeping views, three bedrooms plus a den, two fireplaces, and two balconies. You will love the chef's kitchen with a gas cooktop and beautiful honed granite. There is a community pool and spa that are heated. Very friendly community walking distance to the shopping district in Carefree where you can enjoy several restaurants and shops. This is the Carefree lifestyle! Gated. Two single garages. The large primary also enjoys a fireplace. Although the pool has a heater, they don't heat it any longer. They do heat the spa.

111 Grove Avenue Prescott, AZ 86301

$800,000
4 Beds
4 Baths
2,300 SqFt
Status Active
MLS # 6695992
Property Type Single Family Residence
Price Type --
Rare opportunity to own one of historic downtown Prescott's iconic Queen Anne Victorians, just up the hill from Courthouse Square. With Business General zoning, 5 parking spaces, gated RV parking, easy street parking and an ADA-compliant ramp, the Rudolph Baehr house is ideal for a live-work lifestyle, two-unit vacation rental (zoned HVAC and water heaters), professional offices, restaurant with huge shaded patio or single family home. Potential to add a garage on the rear alley with additional living space above. Listed on the National Register of Historic Places which keeps taxes low ($912 per year). Baehr was a well-known Territorial photographer and painter who is buried in the Odd Fellow cemetery. Updated for modern living while preserving original details like Eastlake door knobs and stained glass windows, this gracious home features a main level with a large parlor, enclosed Arizona room, eat-in kitchen that opens to the rear patio, butler pantry, bedroom and two baths. Upstairs are three bedrooms, a bath, kitchen and family room. The basement has vast amounts of storage and a dehumidifier. New decorative cedar shingle roof and AC on the main level. A short walk to over 100 shops, restaurants and bars in the downtown entertainment district. Close to Dignity Health, Yavapai College, VA campus, public and charter schools, National Forest trails for hiking and biking.

343 W Canyon Street Apache Junction, AZ 85120

$800,000
3 Beds
2.5 Baths
2,512 SqFt
Status Active
MLS # 6745971
Property Type Single Family Residence
Price Type --
Tucked away in the breathtaking Superstition Mountains, this stunning custom home offers sweeping views of city lights and mountain landscapes. Enter through the courtyard to a mosaic-tiled foyer, where handcrafted wood floors and travertine exude elegance. Expansive windows flood the interior with natural light and frame a picturesque backyard dotted with Saguaros. The cozy den and spacious family room are ideal for both relaxation and entertaining. The chef's kitchen boasts granite countertops, walnut cabinets, and stylish pendant lighting. The luxurious master suite features a custom therapeutic jet tub. This property also accommodates horses with 32x16 horse stalls and nearby riding trails, enhancing its appeal. With new carpet, a 2022 roof, solar panels, 1.25 acres, and no HOA!

15919 E Brodiea Drive Fountain Hills, AZ 85268

$800,000
3 Beds
2 Baths
2,087 SqFt
Status Active
MLS # 6746813
Property Type Single Family Residence
Price Type --
Elevated desert living soothes the soul. Views of the Superstitions, Red Mountain, Four Peaks and Fountain. The resort-style backyard is a perfect private sanctuary with heated pool & spa, covered patio with elevated views looking down the arroyo. Open floor plan has vaulted ceiling, fireplace, walls of glass doors to the beautiful backyard and a grand open dining space. Bright, large kitchen offers eat-in dining, stainless appliances, spacious pantry - perfect for entertaining! Two suited bedrooms - primary features huge picture window spa like updated walk-in shower. French doors open to den allow for various uses. Two-car garage with cabinetry, epoxy floor and water softener! In the Neighborhood Property Owners Association. No HOA Fee.

5212 S Monte Vista Street Chandler, AZ 85249

$800,000
5 Beds
3 Baths
3,672 SqFt
Status Active
MLS # 6735967
Property Type Single Family Residence
Price Type --
Welcome to Your Dream Home in Chandler, AZ Step into your stunning 3,672 sq. ft., 5 bedroom, 3 bathroom home with a 3-car garage, located in an A+ rated school district. This thoughtfully designed floor plan includes four bedrooms and two bathrooms upstairs, a formal living and dining room, a breakfast nook, and one bedroom and bathroom downstairs, making it perfect for teens, grandparents, or hosting guests. From the moment you approach the double-door entrance, you'll be captivated. The spacious formal living and dining area is highlighted by a gorgeous half-spiral staircase, creating an elegant centerpiece. Before you rush upstairs to explore the expansive master suite with its snail shower, corner garden tub, and huge walk-in closet, as well as two additional spacious bedrooms, take a moment to appreciate the rest of the first floor. The first floor features a seamless flow from the dining area into an open-concept gourmet kitchen and family room with a gas fireplace and a huge walk-in corner pantry. Meal prep and entertaining in this kitchen will be a joy! It boasts a fabulous gas cooktop, upgraded maple cabinets with crown molding, a large center island, and a bayed breakfast nook - the perfect gathering spot for family and guests. Enjoy outdoor living in the backyard oasis, complete with a gorgeous pool. The newly installed grass patch makes maintenance easy while providing a perfect play area for kids or pets. This home is a buyer's dream. Come and experience it for yourself!

316 E Benrich Drive Gilbert, AZ 85295

$800,000
5 Beds
4.5 Baths
3,355 SqFt
Status Active Under Contract
MLS # 6719860
Property Type Single Family Residence
Price Type --
Immaculate home-desirable Allen Ranch! Open Floorplan offers separated main level bdrm, full bath & additional living area-perfect for a MIL suite! Gorgeous kitchen w/ granite countertops, pantry, gas cooking, island w/ breakfast bar & plenty of cabinet space opens to large great room with gas fireplace. Den with French doors. Primary suite with luxurious bath featuring double sinks, 2 walk-in closets, & separate tub/large shower.4 spacious bdrms & 3 baths upstairs, . Private resort style backyard on large lot with gorgeous sparkling pool & extended patio. Newer AC, water heater, vinyl flooring & more! Plantation shutters, surround sound, large laundry. Enjoy the unbeatable location - Downtown Gilbert & San Tan Village are located within minutes! Easy access to the 202 and 101.

4825 S Orbit -- Mesa, AZ 85212

$800,000
4 Beds
3.5 Baths
2,623 SqFt
Status Active
MLS # 6742014
Property Type Single Family Residence
Price Type --
Welcome home to a perfect blend of luxury, comfort, and entertainment possibilities. This stunning single-level, energy-efficient home in Eastmark features a thoughtfully designed split floor plan, with the primary suite on one side and the additional bedrooms (plus a den) on the other. Boasting three and a half bathrooms, this residence offers ample upgrades and comfortable living spaces, making it an ideal place to call home. As you enter, you'll be greeted by a grand hallway with tray ceiling accents and open-concept living area. Professionally designed upgrades are evident throughout, including the gourmet kitchen with upgraded shaker cabinetry, a large inviting island, quartz countertops, and a designer-appointed tile backsplash. This home has enhancements all throughout such as designer wood plank tile throughout, brand new carpet in the bedrooms, upgraded lighting, modern ceiling fans, modern tile wall with TV mount, a spa-like primary bath with a beautiful walk-in shower, and a primary closet with a door to the laundry room. Additionally, it features a 2-car PLUS tandem garage with an epoxy floor and storage racks. Step outside into your own personal oasis, complete with a sparkling pool & spa, pergola, built-in grill, and smoker. Enjoy your refreshing private pool oasis and spa on a hot summer day or host memorable poolside gatherings, this backyard is sure to be the focal point of endless enjoyment. Eastmark is the ultimate destination for families, professionals, and anyone seeking the perfect blend of luxury and convenience. Dive into a vibrant lifestyle in this dynamic community, where you can enjoy a world-class resort experience complete with a luxurious community pool, splash pads, numerous parks, a one-acre organic Steadfast Farm, and the state-of-the-art clubhouse, The Mark. Don't miss the chance to experience luxury living at its finest and make this exceptional home yours!

3691 S Barberry Place Chandler, AZ 85248

$800,000
4 Beds
2 Baths
2,280 SqFt
Status Active
MLS # 6672641
Property Type Single Family Residence
Price Type --
Seller may consider buyer concessions if made in an offer. Welcome home to this charming property In Ocotillo! A rare find, premium WATERFRONT lot! The natural color palette throughout this home creates a warm and inviting atmosphere. The kitchen features a center island and a nice backsplash. Other rooms offer flexible living space to meet your needs. The primary bathroom boasts double sinks and good under sink storage. Step outside to the fenced in backyard where you'll find a private in ground pool and a covered sitting area, perfect for relaxing or entertaining. Enjoy the fresh interior paint that adds a clean and modern touch. Don't miss out on this fantastic opportunity to make this house your new home!

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