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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40617 N 3rd Avenue Phoenix, AZ 85086

$795,000
4 Beds
3 Baths
2,935 SqFt
Status Active
MLS # 6730298
Property Type Single Family Residence
Price Type --
*JUST VOTED 'BEST VALUE' ON DESERT HILLS/NEW RIVER HOME TOUR!* Bring your horses, cars, boat and toys! This spacious custom home on one acre is well built, boasts amazing views and has been beautifully maintained. High ceilings throughout create space and light, while the beehive wood fireplace is warm and inviting. Granite counters throughout, with travertine and wood floors. Each bedroom has a private exit door and walk in closet, and the bathrooms with stone snail showers are private and easy to maintain. With a chef size kitchen, oversize island and huge patio space off the great room, you can create a fabulous entertaining home to enjoy with friends and family. The massive 4-6 stall garage is perfect for your home-based business or your cars, bikes and toys. Welcome home!

7710 E Gainey Ranch Road Unit 148 Scottsdale, AZ 85258

$795,000 - 2Br/3Ba -  for Sale in Courts At Gainey Ranch, Scottsdale
Open House
$795,000
2 Beds
2.5 Baths
1,200 SqFt
Status Active
MLS # 6751561
Property Type Townhouse
Price Type --
Experience the exclusive Gainey Ranch lifestyle in this fully renovated town home. The open & stylish redesigned kitchen features direct garage entry, soft close white shaker cabinets, polished chrome hardware, ample storage drawers & high end appliances including a built-in oven/air fryer/microwave & a glass cook top. This home offers two master bedrooms w/ en-suite baths & walk-in closets, a spacious flex room + a convenient powder room for guests. Enjoy the elegance of LVP light oak flooring throughout complimented by smart three panel glass doors. The new Lennox A/C unit, new Rheem water heater & Anderson patio doors & picture windows ensure both comfort & efficiency. The home's sought after location is a short walk to the Estate Club amenities. This is a must see, turn key gem! The recently built six million dollar Estate Club offers Pickleball and Tennis, a state-of-the-art fitness center, heated 25 meter lap pool and spa, party rooms and a social calendar for year round fun. With 24 hour security, you can lock-and-leave or enjoy the Gainey Ranch lifestyle with total peace of mind year round.

880 W Cherrywood Drive Chandler, AZ 85248

$795,000 - 4Br/2Ba -  for Sale in Oakwood Lakes, Chandler
Open House
$795,000
4 Beds
2 Baths
2,666 SqFt
Status Active
MLS # 6755876
Property Type Single Family Residence
Price Type --
Seller may consider buyer concessions if made in an offer. Welcome to this beautifully renovated home! This property features a cozy fireplace, fresh interior paint in a neutral color scheme and new flooring. The kitchen is a chef's delight with stone counter tops, walk-in pantry, kitchen island, accent backsplash, and all-new stainless steel appliances. The primary bedroom includes a spacious walk-in closet, an en-suite bathroom with custom tile shower and double sinks, and a separate tub and shower. Enjoy outdoor living with a covered patio, a private in-ground pool, and a fenced-in backyard. This home is a true gem!

1764 E Alegria Road San Tan Valley, AZ 85140

$795,000 - 3Br/3Ba -  for Sale in Shea Homes At Johnson Farms Neighborhood 2, San Tan Valley
Open House
$795,000
3 Beds
3 Baths
2,589 SqFt
Status Active
MLS # 6763094
Property Type Single Family Residence
Price Type --
This is a stunning Create model in the lovely Encanterra Country Club community. Upon entering the home, you will notice a very open feel from the entry all the way to the back yard. This popular Create model home is open for your guests with a large bedroom, gorgeous en-suite, and walk-in closet. The great room has had some gorgeous upgrades from the bar area to the brick wall and fire place. Built to entertain! The spacious back yard has a second fireplace to keep you warm and cozy on those cool AZ desert nights. Not to be left out, this home comes with solar as an added bonus. This home is not to be missed.

10558 E Hawk Avenue Mesa, AZ 85212

$795,000 - 5Br/4Ba -  for Sale in Eastmark, Mesa
Open House
$795,000
5 Beds
3.5 Baths
2,975 SqFt
Status Active
MLS # 6746899
Property Type Single Family Residence
Price Type --
Located in the heart of Mesa's prestigious Eastmark community, where luxury living meets a vibrant and connected lifestyle. As one of Arizona's most sought-after master-planned communities, Eastmark is renowned for its picturesque neighborhoods, award-winning schools, and an array of innovative amenities designed to enhance your quality of life. This exquisite former model home embodies elegance and sophistication, offering a seamless blend of style and functionality. From the moment you step inside, you'll be captivated the meticulous attention to detail that elevates every room. The gourmet kitchen is a chef's paradise, featuring stunning two-tone cabinetry, high-end granite countertops, and top-of-the-line stainless steel appliances, including a gas cooktop, double ovens, and a beautifully designed tile backsplash. The centerpiece of this home is the expansive 15-foot multi-sliding glass door, effortlessly connecting your indoor living space to the resort-style backyard. Whether you're hosting a gathering or enjoying a quiet evening, the sparkling pool and private patio, complete with a screen enclosure, provide the perfect backdrop for any occasion. Built with 2x6 construction, this home not only promises beauty but also durability and energy efficiency. This turn-key ready residence invites you to experience luxury living at its finest, where every detail has been thoughtfully crafted to create a sanctuary of comfort and elegance. Discover why Eastmark is one of Arizona's best-selling communities and make this exceptional residence your own, complete with new garage door systems featuring upgraded motors, a reverse osmosis water system, and fresh exterior paint.

4245 N Recker Road Mesa, AZ 85215

$794,900
3 Beds
2 Baths
2,463 SqFt
Status Active
MLS # 6762113
Property Type Single Family Residence
Price Type --
Gorgeous, custom, single story golf course home with expansive views of the mountains, fairways and open space. This home is set back off of Recker Road and features an oversized 18,000 square foot lot with privacy and views! This home has been meticulously cared for and features a great room concept opening to the large kitchen and affords views of the mountains and green space. Kitchen is finished with Hickory cabinetry, granite slab countertops, walk in pantry, island and plenty of storage and counterspace. The dining area off the kitchen affords gorgeous views and has exterior access to the oversized covered patio, finished in a beautiful travertine stone with a complete outdoor kitchen area. Great room is finished with a gas fireplace, entertainment center, plenty of space for family and friends. The great room has a gas fireplace, built in entertainment center and exterior access to the oversized covered patio with views of the mountains and fairways. The owners suite is oversized and has exterior access to the outdoors with stunning views. Owners bath features dual sinks, private commode, walk in shower and large walk in closet. Secondary bedroom is located on the opposite side of the owners and features a large walk in closet and attached hall bath. Large, oversized office/den/bedroom is multipurpose and has exterior windows to the front and side yards. Laundry room is finished with sink, plenty of cabinetry and storage space, built in ironing station. The oversized 3 plus car garage is finished with cabinetry, workbench and has exterior access to the backyard via garage. Third bedroom is being used as an office, is oversized and could be converted into the 3rd bedroom easily with a door/closet. This is a gorgeous home in a highly desirable community in NE Mesa. Pride of ownership prevails.

6333 W Dublin Lane Chandler, AZ 85226

$794,900
4 Beds
2.5 Baths
2,850 SqFt
Status Active Under Contract
MLS # 6754480
Property Type Single Family Residence
Price Type --
Coveted Ritz plan featuring 4 bedrooms with 2.5 baths upgrades galore, Polished walnut travertine flooring throughout, upgraded carpet in bedrooms and hand scraped hardwood flooring in formal living room. Custom Upgrades through, designer wet bar and gas fireplace. Master bedroom features custom Classy Closet built-ins, dual shower heads, and separate exit to patio. Secondary bathroom features full shower, dual sinks and tile throughout. Custom stained wood shutters, 5 1/4'' baseboards, upgraded ceiling fans and over 40 ceiling can lights throughout. Garage features built-in cabinets and epoxied garage floors. Soft water system, R/O System, and stainless steel appliances all stay. N/S Exposure. 4th Bedroom used as office with Murphy Bed, No Closet. Additional Split A/C Unit. New Roof 2023

4151 E Mercer Lane Phoenix, AZ 85028

$794,900
3 Beds
3 Baths
2,342 SqFt
Status Active
MLS # 6706656
Property Type Single Family Residence
Price Type --
Don't miss seeing this beautiful 2342 square foot home in sought after North Shea Estates! Soaring ceilings, light & bright interior, custom stone work, upgraded lighting and ceiling fans, wood floors, plantation shutters, gas fireplace and much more to see! Private, cul-de-sac lot with no neighbor to the east and across from green grass common area. Just minutes from I-51, PV Mall area and close to Loop 101, Desert Ridge, golf, dining, schools, etc.! 3 bedrooms, 3 bathrooms and a large bonus room (one bedroom and full bath downstairs - perfect for guests), eat-in kitchen opens to patio and boasts stainless steel appliances, granite countertops, recessed lighting & pantry! Beautiful backyard offers covered patio, sparkling pool, mature lighted landscaping & double gate!

7073 E Brilliant Sky Drive Scottsdale, AZ 85266

$794,000
3 Beds
3 Baths
1,646 SqFt
Status Active
MLS # 6758107
Property Type Single Family Residence
Price Type --
Impeccably maintained example of the 3 bed, 3 bath + Casita Novus GREAT ROOM model that is loved for ZERO WASTED SPACE and wide-open feel that lives far larger than the square footage would suggest. ROOF AND HVAC were replaced in 2017 and the home is located in a quiet Cul-de-sac a mere chipshot away from the Terravita Clubhouse, Dining, Pools, tennis, Pickleball, golf, AND the Terravita Marketplace. Outdoor living is wonderful with a large gated front courtyard and a SOUTH EXPOSED (Warm in Winter, cooler in Summer) backyard that backs to preserve and has a newly refinished heated pool and spa and lots of Kool-Deck entertaining space. Large rear windows

2025 W Steed Ridge Phoenix, AZ 85085

$794,000
4 Beds
3 Baths
2,689 SqFt
Status Active
MLS # 6741674
Property Type Single Family Residence
Price Type --
Welcome to your stunning new home in the prestigious Fireside at Norterra community, where panoramic views of the Sonoran Preserve set the scene for luxurious living. Step inside to discover a spacious family room that seamlessly connects to an expansive kitchen and dining area, designed for the ultimate entertainment experience. The kitchen is a chef's dream, featuring a gas cook top, stainless steel appliances, granite countertops, and a large island with ample storage. This home offers a desirable split floorplan, with a primary bedroom that includes an en-suite bath for a private retreat, and three additional bedrooms that can serve as guest rooms, a home office, or additional storage. lOutdoor living is equally impressive with a secluded patio featuring a built-in BBQ, artificial turf, and a view fence overlooking the preserve, perfect for relaxation or entertaining. Additional luxuries include a newer HVAC system, a hot water tank, custom crown molding, and a built-in speaker system. Residents of Fireside at Norterra enjoy access to a community center with a gym, rock climbing wall, pools, tennis courts, and a playground, plus proximity to hiking and biking trails, restaurants, shopping, Lake Pleasant, and major freeways. This home not only offers beautiful interiors and a vibrant community but also positions you perfectly for enjoying everything North Phoenix has to offer.

7665 N Pine Street Williams, AZ 86046

$794,000
3 Beds
2 Baths
1,856 SqFt
Status Active
MLS # 6755339
Property Type Manufactured Home
Price Type --
Welcome to your DREAM RANCH ESTATE, nestled on 15 acres of pristine land, offering unparalleled 360-degree views of the surrounding majestic mountains. This stunning HORSE PROPERTY is a true gem, perfectly designed for those seeking a luxurious yet tranquil country lifestyle.The estate features a beautifully remodeled 3-bedroom, 2-bathroom home, showcasing an open floor plan that seamlessly blends comfort and elegance. Every detail has been meticulously updated, including new luxury vinyl flooring throughout, central air for year-round comfort, and FRESH INTERIOR AND EXTERIOR PAINT. The home also boasts new blinds, siding, and modern fixtures, all chosen to enhance both functionality and style. The heart of this property is its fully equipped horse facilities, including a newly REMODELED BARN, spacious stalls, and secure corrals, all ready to accommodate your equestrian needs. A well-maintained CHICKEN COOP and additional outbuildings provide space for all your farm animals, making this estate a true working ranch. One of the standout features of this property is the CUSTOM-BUILT OUTDOOR LIVING AREA, a true entertainer's paradise. Imagine hosting unforgettable family gatherings, lively barbecues, cozy movie nights, relaxing hot tub evenings under the stars, or grand celebrationsall set against the backdrop of Northern Arizona's stunning landscape. This outdoor space is designed to bring loved ones together, creating memories that will last a lifetime. This estate is more than just a home; it's a perfect family compound, ideally suited for multi-generational living. With ample space, privacy, and amenities, it provides the perfect environment for families to grow, thrive, and enjoy life together. For those looking to expand, additional acreage is available for purchase, offering endless possibilities to customize and enhance your ranch. Best of all, this property comes with no HOA or CC&Rs, giving you the freedom to truly make it your own. SELLER FINANCING may be available, offering flexible terms to help make this property yours. Conveniently located just off paved Hoctor Rd., this ranch is only 15 minutes from the charming town of Williams, 30 minutes from the awe-inspiring Grand Canyon, and 45 minutes from the vibrant city of Flagstaff. Whether you're seeking a serene retreat or an active rural lifestyle, this charming Northern Arizona ranch estate offers the perfect escape from the hustle and bustle of city life. Don't miss the opportunity to make this luxury ranch estate your own and experience the best of what Northern Arizona has to offer.

6529 W Via Montoya Drive Glendale, AZ 85310

$794,000
5 Beds
3 Baths
2,717 SqFt
Status Active
MLS # 6731699
Property Type Single Family Residence
Price Type --
Rare remodeled SINGLE-STORY 5 BEDROOM in premier Arrowhead community, with Mountain views from your front door! Fully remodeled kitchen with quartz countertops on double islands, white shaker cabinets, tile backsplash, built-in cooktop, and stainless appliances. Open floor plan with 3 full bathrooms, a large master suite, and an additional converted fifth bedroom. Travertine & porcelain tile throughout; no carpet! New interior paint 2022. Extremely private outdoor space with refinished PebbleTec pool (2022) & 3-hole putting green! Low-maintenance landscape. Desirable community within walking distance to Sprouts, Cold Beers & Cheeseburgers, & other shopping + dining. Proximity to hiking trails, two 18-hole golf courses, & Arrowhead Country Club. Close access to 101 freeway.

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