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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9610 N 35th Street Phoenix, AZ 85028

$799,900 - 4Br/2Ba -  for Sale in Foothill Del Oro, Phoenix
Open House
$799,900
4 Beds
2 Baths
2,581 SqFt
Status Active
MLS # 6745878
Property Type Single Family Residence
Price Type --
INCREDIBLE 2007 re-constructed DREAM home near the Phoenix Mountain Preserve ~ SINGLE LEVEL, LOVINGLY maintained & updated CLASSIC Ranch home w/ INCREDIBLE BACKYARD on over 9,000 Sqft lot ~ 4 Bedrooms ~ 2 Bathrooms ~ Main living & Kitchen areas offer RECESSED LIGHTING ~ FRESH INTERIOR PAINT 2024 ~ Newly installed QUARTZ Kitchen countertops w/ stainless-steel sink ~ Kitchen Cabinets w/ pull-out shelves ~ Living Room w/ new carpet in 2024 ~ Living & Formal Dining Rooms features Arched WINDOWS bathing the room w/ NATURAL LIGHT ~ Energy efficient DUAL PANE windows & ceiling fans throughout ~ ROOMY Pantry w/ layers of shelving ~ Comfortable floor plan ~ Separate Living, Great & Dining Rooms ~ Walls have rounded corners, open arches & 9 ft smooth ceilings ~ AMPLE sized Laundry Room leads to SEPARATE OFFICE area off 2 car Garage ~ NEWER Garage door opener ~ 3 SIZABLE Guest Bedrooms w/ sliding closet doors ~ GENEROUS Guest Bathroom w/ DUAL sinks & plenty of storage ~ Primary Bedroom has UPDATED vinyl flooring installed in 2024 ~ Dual sinks in Primary Bathroom w/ glass block shower ~ French doors leads to enclosed sun room & outside ~ Dual HVACs replaced in 2007 ~ Electrical & Roof installed in 2007 ~ SPARKLING POOL drained & newly redone in 2024 w/ GORGEOUS Flagstone Pool surround ~ BEAUTIFUL patio pavers w/ fire pit provides an OUTSTANDING space for entertaining ~ SOARING COVERED PATIO ~ UNBELIEVABLE LOCATION Short walk or bike ride to Phoenix Mountain Preserve w/ miles of trailheads, hiking, biking & even horseback riding ~ Tranquil country living w/ 2 minutes to to Highway 51 for easy access to freeways ~ 3 Miles to best-in-class restaurants, retail & entertainment near the newly reimagined PV or Stonecreek Golf Club ~ 15 Minutes to PHX Airport ~ THIS ONE CHECKS EVERY BOX & then some!

17259 E Woolsey Way Rio Verde, AZ 85263

$799,900 - 2Br/2Ba -  for Sale in Trilogy At Verde River Phase 3 Unit 3b, Rio Verde
Open House
$799,900
2 Beds
2 Baths
1,752 SqFt
Status Active
MLS # 6706758
Property Type Single Family Residence
Price Type --
Please see video attached! This beautiful lock and leave, one level, 2b 2b + den property with gorgeous views spoils you with the Luxury Lifestyle you deserve! Situated in the prestigious golf community of Trilogy Verde River in the Sonoran desert, this turn key home is north/south facing and bonus--it backs to green space! The spacious primary bedroom has an abundance of natural light and a huge walk in closet. The chef's kitchen is fully equipped with a gas stove and stainless appliances, and of course, an oversized island for additional prepping space or extra seating for guests. If a 3rd bedroom is desired, the den has a closet of it's own, making it an easy conversion to a bedroom. The generously sized professionally landscaped backyard and covered patio areas are the perfect spot to relax while reading your favorite book with your morning coffee, or enjoying sunsets with a glass of wine. Added bonus: you own view of Four Peaks! The exterior of this property has recently repainted, and the two car garage DOES have space for a golf cart. At TVR, you'll be able to indulge in resort amenities, while being in close proximity to activities outdoor enthusiasts are known for visiting Arizona for; kayaking, hiking, golf, bird watching, stargazing, ATV riding, biking. Just bring your suitcase, beach towels, and golf clubs!

14407 N 75th Drive Peoria, AZ 85381

$799,900 - 3Br/3Ba -  for Sale in Bella Pasa, Peoria
Open House
$799,900
3 Beds
3 Baths
2,151 SqFt
Status Active
MLS # 6507357
Property Type Single Family Residence
Price Type --
** QUICK MOVE-IN HOME*** 3.99% FIRST YEAR RATE / 5.99% FIXED* On a 11,334 sq/ft lot, with a 2,151 sq ft on a single level. A 3-car tandem garage PLUS, a retreat/guest quarters with a kitchenette in the sitting room, full bath, walk in closet and bedroom making a total of 3 bedrooms and 3 full bathrooms! Extended patio, multi-sliding glass doors to the backyard, gourmet kitchen with LG appliances including wall ovens, custom low voltage and electrical packages. Designer touches include Calacatta Devine quartz countertops in the kitchen and laundry room, with white AND caviar 42'' shaker cabinets throughout the home. Custom front yard landscape package with paver driveway. 3.99% first year rate (restrictions apply) on a 2-1 Buy Down

22511 E Saddle Court Queen Creek, AZ 85142

$799,822
4 Beds
3 Baths
2,395 SqFt
Status Active
MLS # 6740251
Property Type Single Family Residence
Price Type --
Just bring your toothbrush! This beloved model comes fully furnished, including wall décor, designer touches, built ins and it's and ready for its owner! This single level home of our most popular plan features a desert modern exterior style, four bedrooms, three full bathrooms and a flex room with built in custom cabinets. The kitchen features stylish slab cabinets in a natural stain, a gorgeous natural Quartzite waterfall island that overlooks the spacious dining and great room area, a large and bright primary suite with faux ceiling beams, with access to your large, covered patio. The primary bathroom includes a double vanity and a frameless shower with custom surrounds, alongside a soaking tub. February 2025 COE.

327 W Calle De Caballos Street Tempe, AZ 85284

$799,800
5 Beds
2.5 Baths
2,846 SqFt
Status Active
MLS # 6754415
Property Type Single Family Residence
Price Type --
Welcome to your new home! 10K SELLER CONCESSIONS FOR BUYERS CLOSING COSTS & RATES, total remodeled in south Tempe area, close to schools, shopping areas, and many jobs' locations and freeways. House comes with 18'' extra tall ceilings included Primary bedroom, Kitchen with beautiful Island, Stainless steel appliances & Granite counter tops. Master bedroom is located on the first floor, there is also a second bedroom located on the first floor as well. This is your dream home. Come to see it!

7396 E Crimson Sky Trail Scottsdale, AZ 85266

$799,800
2 Beds
2 Baths
2,128 SqFt
Status Active Under Contract
MLS # 6744886
Property Type Townhouse
Price Type --
Charming and well-maintained Winfield end-unit with 2 beds, 2 baths plus a den. This light-filled home features abundant windows and an open kitchen with a gas cooktop, double ovens, microwave, spacious countertops, and breakfast bar. The kitchen flows seamlessly into the bright Great room. The spacious Primary suite boasts a sliding door to an expansive patio with a built-in BBQ. New HVAC 2023! Enjoy low-maintenance living with HOA coverage for roof repair/replacement (2018), exterior paint (2023), and front yard upkeep. Perfect as a lock-and-leave or full-time residence, with an easy walk to tennis, pickleball, pool, and clubhouse.

1549 E Luminous Lane Queen Creek, AZ 85140

$799,700 - 2Br/3Ba -  for Sale in Encanterra - Shea Homes At Johnson Farms Neighborhood 1, Queen Creek
Open House
$799,700
2 Beds
2.5 Baths
2,618 SqFt
Status Active
MLS # 6715425
Property Type Single Family Residence
Price Type --
Truly GREAT home located on a premium lot bordering common area, PAID OFF SOLAR and 2 en-suites! With over 150k in upgrades and improvements, it is simply beautiful! Expansive kitchen with newer Viking stainless appliances, 2 large islands, walk-in pantry, granite counters & backsplash, make this kitchen not only functional, but perfect for entertaining with the attached side courtyard and cozy fireplace! Stunning wood beams enhance the kitchen and living areas, along with a custom entrainment wall! Spacious primary suite, with dual walk-in closets, elegant bath and hidden room for additional bonus room! The backyard is peaceful & private with a large water feature, fire pit, built-in outdoor kitchen complete w/grill and burners, built-in cooler, travertine surround & lush landscaping! There are so many extras in this home as well as a den, and dining area in addition to the secret bonus room off the primary! From multiple French doors accessing outdoor spaces, outdoor lighting, surround sound both inside and outdoors, custom walls, oversized garage with extension for plenty of storage, epoxy floor and built-in cabinetry! Exterior was just painted in 2023 as well! Highly maintained home!

7358 E Red Hawk Street Mesa, AZ 85207

$799,500
4 Beds
2.5 Baths
2,757 SqFt
Status Active
MLS # 6734801
Property Type Single Family Residence
Price Type --
Welcome to the beautiful gated community of Las Sendas! NEW ROOF (2022), NEWER A/C UNITS, NEWER WATER HEATER, NEW LVP FLOORING and fresh exterior paint (2024)! This highly desirable single story floor plan features 4 bedrooms, 2.5 baths and a 3 car garage with a POOL! Interior features neutral tones throughout, vaulted ceilings and plenty of natural light. This split floorplan includes a spacious primary bedroom complete with an en suite bathroom and walk-in closet. Secondary bedrooms are separated from the primary suite and have a separate full bathroom with a double vanity and shower/tub. The kitchen is fully equipped with a built-in microwave and oven, island with a cooktop, and walk-in pantry. From the eat-in kitchen, step outside to a large covered patio, a backyard with desert landscaping, a fenced in play pool, and a large grassy area. The garage is equipped with built-in cabinets for ample storage. Community amenities include two swimming pools/spas, parks, trails, pickleball/tennis courts and more. Neighborhood attractions include the Las Sendas Spa & Fitness Club, Trailhead Members Clubhouse, Las Sendas Golf Course & restaurant. Just minutes away from the Salt River and Saguaro Lake. Easy access to Loop 202 and quick commute to Sky Harbor Airport.

3219 N Boulder Canyon Mesa, AZ 85207

$799,500
5 Beds
3 Baths
2,731 SqFt
Status Active Under Contract
MLS # 6727803
Property Type Single Family Residence
Price Type --
Welcome to this stunning home in Granite Ridge, a prestigious gated enclave within the sought-after Las Sendas Community. Situated on the 4th Hole Tee Box of the renowned Las Sendas Golf Course, this impressive residence boasts dramatic tall ceilings that enhance the sense of space and light, the formal living and dining rooms are perfect for entertaining. The beautifully updated kitchen features elegant Quartz countertops, white cabinetry, stainless steel appliances, and an island with a breakfast bar. The family room offers a cozy retreat with its inviting gas fireplace and ample natural light. Plus, downstairs, you'll find a comfortable bedroom and a full bathroom, ideal for guests. The laundry room, conveniently located on this level, is equipped with a sink and ample cabinetry for storage. Upstairs, the luxurious primary suite awaits, offering a private balcony with breathtaking mountain views. This retreat features tall ceilings, a lavish ensuite with a separate shower and soaking tub, dual sinks, and a spacious walk-in closet. Three additional well-appointed bedrooms are also located on the upper level, each move-in ready. Step outside to your very own backyard oasis, designed for relaxation and enjoyment. The expansive space includes a grassy area, a sparkling pool and spa, a large, covered patio, and a built-in fireplace. A view fence allows for uninterrupted views of the beautifully landscaped surroundings. With its combination of elegant interiors and exceptional outdoor amenities, this home is truly a sanctuary of comfort and style. Don't miss the opportunity to make it yours. Las sendas is an amenity-rich community featuring two swimming pools, a splash pad, and lighted courts for basketball, pickleball, and tennis. Enjoy numerous parks, scenic hiking trails, and a state-of-the-art recreation center with a spa, all nestled within a premier golf course setting. Walking distance to Las Sendas Elementary School!

23612 W Beacon Lane Wittmann, AZ 85361

$799,500
4 Beds
3 Baths
2,566 SqFt
Status Active
MLS # 6747858
Property Type Single Family Residence
Price Type --
MOVE IN READY! Don't spend money on homes not landscaped, this one is fully landscaped with Large Tack Room. Bring your Horses and/or Big Boy Toys. Plenty of Room with a 1.003 Acre Lot. Complete with Landscaped Yards, Lush Mature Trees, Green Grassy Area, Tack Room Full Electric with 2 Entries 1 Being a Garage Door, Plenty of Storage with a Loft. Side and Front Covers. Horse Corral with Shade Cover, Exercise Arena(Turn-Out), Fully Enclosed Double Fenced Backyard with Owner's Separate Private Fence. This Gorgeous Home has been Meticulously Cared For by the Owner's. Features Include, Oversized 3 Car Garage, Spacious Open Split Floorplan, Fresh Air Vent in Laundry, Large Island Kitchen,Granite Counters, Vaulted Ceilings, Tall Doorways, Wide Entry Door, Mountain Views Front and Back. Beautiful Ceramic Tile, Large Great Room.

6550 E Phelps Road Scottsdale, AZ 85254

$799,450 - 3Br/2Ba -  for Sale in Trails North Unit 1, Scottsdale
Open House
$799,450
3 Beds
2 Baths
1,840 SqFt
Status Active
MLS # 6719056
Property Type Single Family Residence
Price Type --
Discover luxurious living in the sought-after 85254 zip code with this beautifully remodeled home. This 3-bedroom, 2-bathroom gem features an open floor plan and is just minutes from North Scottsdale's premier shopping and dining. The airy living room boasts vaulted ceilings, a brick fireplace, and an extra bonus room. The primary bedroom includes a large walk-in closet, dual vanities, and a private water closet. The light-filled kitchen features stainless steel appliances, stunning countertops, gold hardware, and a window overlooking the resort-style backyard. Perfect for entertaining, the backyard offers a large pool, citrus trees, mature landscaping, and a covered patio with a misting system.

5880 S Boulder Street Gilbert, AZ 85298

$799,373
4 Beds
3.5 Baths
3,309 SqFt
Status Active
MLS # 6710224
Property Type Single Family Residence
Price Type --
Gorgeous, new 4-bedroom home featuring a generation suite in Gannet at Waterston Central. The home features designer selections including a Gourmet kitchen that boasts a 30'' gas cooktop, backsplash, Della Terra honed quartz countertops, and pendent pre wiring above the kitchen island. Upgrades include the carpet, cabinetry, and bath light fixtures. Other highlights in the home are a surround sound speaker pre wire in the great room and patio, a 16' center pull slider in the great room, double sinks at bathroom 2, and a frameless walk-in shower in the primary suite bathroom. The home is on a soft water loop. The community is gated creating a private atmosphere and features a community pool.

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