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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7726 N Foothill Drive Paradise Valley, AZ 85253

$3,480,000
5 Beds
4 Baths
4,676 SqFt
Status Active
MLS # 6632404
Property Type Single Family Residence
Price Type --
VIEWS, VIEWS, Stunning elevated Mummy Mountain Hill Side VIEWS, stretching +40 miles of mesmerizing changing colors of the southwest landscapes, and serene city lights, after sunset. The converging of several factors and circumstances, make this, a unique estate lot, unquestionably, one of the best P V lots, worth their value, with discernible and quantifiable features. Specifically, the extended footprint of the current dwelling, driveway and pool area, provide an existing building envelop that is an owner's dream for a generational home and paves the path of a smoother and faster permitting process, while providing an architect, limitless possibilities for a legacy masterpiece design, and importantly, facilitating the builders' challenges to minor landscape disturbances, avoiding delays and costly excavations. Included are, a complete design and construction plans for approx. 8000 SF home, developed with Hillside Requirements in mind. Unlimited options and BEST LOCATION IN PARADISE VALLEY!

27974 N 96th Place Scottsdale, AZ 85262

$3,450,000
4 Beds
3.5 Baths
3,948 SqFt
Status Active
MLS # 6711953
Property Type Single Family Residence
Price Type --
ESTANCIA GOLF MEMBERSHIP AVAILABLE SUBJECT TO BOARD APPROVAL. Single-level home on a 1.3 acre lot with south-facing views of Pinnacle Peak from the great room and master bedroom. This custom home has an open floor plan with large kitchen that flows seamlessly to the living and dining areas. Interior features include stone flooring, wood-beamed ceilings, custom cabinetry, stainless steel kitchen appliances, stone fireplace surrounds, 700-bottle wine room & adjacent wet bar. Exterior living area offers a large covered patio with TV area, gas fireplace, heated spa, built-in BBQ station, many mature citrus trees, and a rooftop deck plumbed for a bar with stunning panoramic views. Large solar panel system is owned. Oversized 3-car garage includes an electric vehicle charger. With all the features, views and Golf Membership... this home will sell fast!

12020 N 68th Place Scottsdale, AZ 85254

$3,450,000
5 Beds
5 Baths
5,022 SqFt
Status Active
MLS # 6752052
Property Type Single Family Residence
Price Type --
NEW from Thomas James Homes with an opportunity to select some interior finishes during early stages of construction! This house has a great address and great schools. Sitting in the highly desirable Scottsdale neighborhood, this beautiful 5 bedroom, 5.5 bathroom this contemporary home is the definition of exceptional design. Wide plank wood flooring, decorative ceiling and wall treatments, including beams and wood paneling, impressive custom lighting, outstanding millwork, stone and tile accents, a gorgeous floor to ceiling fireplace, flat panel cabinetry and a 4-car garage are just a sampling of the outstanding finishes going into the home. The large single story open concept floorplan is expertly crafted for modern living with a large interior courtyard leading to the home's entrance. Inside you'll find a large great room and luxury kitchen joined by a large quartz countertop island. The grand suite hosts a large his and hers walk-in closet and a spa like bathroom with a freestanding soaking tub and walk-in shower. The secondary bedrooms throughout the home have en-suite bathrooms. In addition to the bedrooms, you'll find ample added living space with a private office and a kitchen prep area adjoining a bonus room. Home will feature fully landscaped front and back yards with a pool and spa, providing great Arizona outdoor living space. This home is minutes from dining, shopping and more. Expected completion Fall 2025.

5791 S Columbus Court Gilbert, AZ 85298

$3,420,000
6 Beds
6.5 Baths
5,782 SqFt
Status Active
MLS # 6710289
Property Type Single Family Residence
Price Type --
Stunning custom home in one of Gilbert's finest neighborhoods. Perfect floor plan w/custom built in cabinetry throughout. Music room, office/den, dedicated gym w/floor to ceiling mirrors, kid wing w/family room & 4 large bedrooms, all ensuite with walk in closets. Massive laundry room w/mudroom locker space. Additional mudroom cabinets in oversized 4+ car garage complete with custom storage & dedicated workshop. Climate controlled RV garage/entertainment facility. Beautiful kitchen with unique walk thru pantry. Copper sink, 2 dishwashers, pebble ice maker, 2 Sub Zero refrigerator/freezers, Tabarka hand painted tile over DCS 6 burner stove with griddle & 2 ovens. Huge Master Suite with Turkish Travertine in M. Bath, multiple shower heads & large closet w/custom cabinetry & W/D. Casita with full kitchenette, bed/bath, walk in closet w/stacked W/D. Outside space features mature trees offering privacy & shade throughout. Drinking fountain, multiple orange trees, lemon & grapefruit. Heated pool w/retractable cover, built-in BBQ, outdoor shower, pergola, 4 hole golf w/sand trap, in ground trampoline, sunken gas fire-pit area, lighted basketball court, 3 zone misting system (pergola, pool, golf course), & private side yard retreat. Fresh paint throughout. Control 4 system w/security cameras & built in speakers inside & out.Two 35 ft dry wells under golf green. 15'' sprayed foam insul in ceiling, tankless water heaters. Must see home!

744 Woodridge Lane Prescott, AZ 86303

$3,400,000
4 Beds
6 Baths
5,897 SqFt
Status Active
MLS # 6662096
Property Type Single Family Residence
Price Type --
One of the premiere homes in Hassayampa Village boasting unparalleled quality, workmanship and amazing long distance views. Located within the main gate of Capital Canyon Golf Club, one of Arizona's top rated private gated golf course communities, this very special home offers main level living with Great Room, Kitchen, DR & LR on main floor with Master on the entire 3rd floor with wine room, Office and 3 Ensuites on lower level. Features include Stone Exterior, hardwood flooring, granite counters & metal roof. 3rd car garage is currently being used as a professional workshop with a half bath. Detached utility shed is great for extra storage. Parcel can be expanded to include lots on either side of home for more privacy. Additional features include: Beamed ceilings, built-in niche book

1402 E Coral Cove Drive Gilbert, AZ 85234

$3,400,000
8 Beds
7.5 Baths
11,705 SqFt
Status Active
MLS # 6719083
Property Type Single Family Residence
Price Type --
Magnificent lakefront 2-story basement estate on rare Peninsular lot w/approx 239' (2 sides) of lakefront nestled on a cul-de-sac lot in the prestigious, gated West Lake Estates Val Vista Lakes water-wonderland Community. Approximately 8,429sf above grade & 3,276sf of beautifully finished basement w/ living quarters, wet bar/kitchenette, 720 btl wine room & gym; a bright upper level attached full Guest Quarters w/sep. entrances; nearly new roof, HVAC & OWNED solar! Thoughtful design w/ superior function, energy efficiency & a flowing floor plan for easy living & entertaining. Timeless architecture, stunning water views & mountain vistas - a lifestyle second to none. Lavish community amenities w/ convenient location to shopping, dining & easy highway access; minutes to airport! (SEE SUPPL) Amenities and updates abound in this luxurious lakefront residence! 1.

18720 N 101st Street Unit 2019 Scottsdale, AZ 85255

$3,400,000
3 Beds
4 Baths
3,239 SqFt
Status Active
MLS # 6635492
Property Type Apartment
Price Type --
The FINAL and much anticipated phase of the highly successful Icon project now available with construction well underway and estimated completion in 2024. This is not only an opportunity for extraordinary views and new construction , it also continues to be the best opportunity to be inside the gates of Silverleaf. ICON at Silverleaf offers an unlimited lifestyle with the lock-and-leave luxury of exceptional single-story flats amid the incomparable beauty of Arizona's McDowell Mountains. This rare and unique offering of spacious, open-concept residences affords the very best of all possible worlds, close to the cosmopolitan conveniences of affluent North Scottsdale, yet secreted within the pristine privacy of the Sonoran Desert behind the gates of the truly iconic upscale private resort community of Silverleaf. Silverleaf, located in North Scottsdale, Arizona, is a prestigious guard gated community known for its luxurious estates, exclusive golf courses, private Club and stunning desert landscapes. The Tom Weiskopf-designed Silverleaf Golf Course is a highlight for golf enthusiasts. With a blend of Spanish and Mediterranean-inspired architecture, the community offers a high standard of living, including upscale amenities like spas, fine dining, and exclusive shopping. Residents enjoy a harmonious balance between modern luxury and the natural beauty of the desert environment, making Silverleaf a sought-after destination for those seeking an exceptional lifestyle in North Scottsdale.

4106 E San Miguel Avenue Phoenix, AZ 85018

$3,400,000 - 4Br/4Ba -  for Sale in Marion Estates Replatted 2 Lots 73-116, Tr A & B, Phoenix
Open House
$3,400,000
4 Beds
3.5 Baths
3,844 SqFt
Status Active
MLS # 6748744
Property Type Single Family Residence
Price Type --
Blue Sky's newest build in the coveted Marion Estates is ready for its big reveal! Buyers will be wowed by each detail of the property, which features a Lutron smart home control center that services lights, TVs, music, a security system and shades, all from the touch of a button. The thoughtful floorplan contains four bedrooms, including two spacious suites and a flex room. The entertainer's kitchen showcases Energy Star top-rated appliances, custom cabinetry and a generous kitchen island. The outdoor ambiance, which includes a rooftop patio, will captivate owners and guests alike with landscape design by Creative Environments that boasts a sparkling pool, spa, built-in BBQ and an expansive fire pit. Plus, it's impossible to miss the stunning views of Camelback Mountain & Piestewa Peak

28047 N 96th Place Scottsdale, AZ 85262

$3,399,000
4 Beds
4.5 Baths
5,448 SqFt
Status Active Under Contract
MLS # 6615585
Property Type Single Family Residence
Price Type --
Nestled within the prestigious Estancia Golf Club, this captivating Old World Spanish-style residence is a testament to timeless elegance and architectural craftmanship. With 3 bedrooms ensuite, plus an additional bedroom, or two offices, this home is a haven for those seeking classic charm and breathtaking natural beauty. Interior spaces are adorned with exquisite slate stone and wood plank flooring, brick feature walls and beamed ceiling detail lending an air of rustic authenticity. The heart of the residence is the spacious living area, with a centerpiece fireplace, adjacent to wet bar and wine cellar. The primary bedroom suite is a private retreat with cozy fireplace, exercise room and spa-like bathroom. Outdoor living spaces are remarkable with multiple seating areas and fireplaces with panoramic views of Pinnacle Peak and breathtaking sunsets. Enveloped in lush landscaping, the home provides privacy and tranquility.

8518 E Wood Drive Scottsdale, AZ 85260

$3,399,000
5 Beds
4.5 Baths
4,931 SqFt
Status Active Under Contract
MLS # 6722523
Property Type Single Family Residence
Price Type --
Incredible SoHome Scottsdale Designed Custom Home on a Full Acre Lot, Fresh Remodel From Floor to Ceiling. 5 bedrooms plus a bonus/playroom plus office & workout space, 4.5 baths 3 car garage move in ready and no HOA! Some of the amazing upgrades include: 3 large Andersen Multi slide door, new Milgard windows throughout, new roof, all new flooring, fresh paint inside/out, quartz countertops, new plumbing fixtures, carpet, cabinets, custom front metal door, light fixtures, hardware... everything is new. Open floor plan has lots of natural light and open entertaining spaces. Large kitchen with 11 foot island, and gas (propane) cooktop. Laundry Room with doggy spa. Full acre lot with mountain views and mature landscaping, new sod and lots of room to build garage or guest house.

9020 N Flying Butte -- Fountain Hills, AZ 85268

$3,399,000 - 4Br/6Ba -  for Sale in Eagle Mountain Parcel 4, Fountain Hills
Open House
$3,399,000
4 Beds
5.5 Baths
7,000 SqFt
Status Active
MLS # 6664428
Property Type Single Family Residence
Price Type --
Golf course community! Welcome to this immaculately SPOTLESS home and prepare to be blown away by VIEWS from every room! 4 En-suite bedrooms, +Office +Theater +Gym +5 Car garage =100% Wonderful! Huge kitchen with 2 islands, 2 dishwashers, gas cook top, natural light convenient dumb-waiter from garage to pantry. ** MILLION DOLLAR VIEWS!** 100% move in ready! *Perfect split floor plan! Upon entering this custom home, you are greeted by an awe-inspiring natural splendor. Host unforgettable gatherings in the grand open family room (35 X 30), where guests can mingle effortlessly amidst the backdrop of panoramic mountain vistas and city lights. Don't miss the opportunity to make this unparalleled oasis your own. First time on the market!

1275 Dry Creek Road Sedona, AZ 86336

$3,395,000
6 Beds
5 Baths
6,414 SqFt
Status Active
MLS # 6747035
Property Type Single Family Residence
Price Type --
This sprawling West Sedona Estate is amazing for so many reasons! The main home is spacious and has 4 bedrooms, 4 ensuite baths on 2.09 fabulous acres with expansive 360 views overlooking so many of Sedonas' landmark red rock mountains in an amazing location with no HOA. The outdoor entertaining areas are ample with plenty of room to relax and unwind including a putting green, multiple fireplaces, hot tub and pool. This home has an oversized 4 car detached garage with room for a workshop, 2 driveways, a separate guest house featuring 16-foot ceilings, 2 bedrooms, living area, kitchen with an attached climate-controlled RV garage. This extraordinary retreat is currently functioning as a successful short-term rental. This property has produced 350k in gross revenue in its first year, comes fully furnished but would also be a wonderful home for your family or great second home. The main house is 6,414 square feet with 4 spacious bedrooms 4 ensuite bathrooms and the primary Bedroom is on the main level and is huge with a stacked stone rock wall to add to its ambiance. Walk out to the expansive rear patio and enjoy morning coffee while admiring some of Sedona's most iconic rock formations. The kitchen has a Cambria Quartz Island and countertops. NXR chef grade range with a 6 burner gas cooktop, wine fridge, plenty of space to cook and entertain with multiple options for casual dining including a charming out door pergola with a large dining area, an outdoor fireplace and 2 outdoor fire pit areas, surrounded by lush greenery and mature fruit trees. There are so many outdoor entertainment areas it will be hard to choose where to be, the upper level which boasts a large living room/game room, fireplace and two huge decks. The views are unobstructed, you can see all the way to Mingus Mountain and the twinkling lights of Jerome. Cockscomb, Doe Mesa, Bear Mountain and Boynton Canyon to the West and Lizard, Chimney, Thunder Mountain to the East. Come see this in person, it is truly spectacular. Allow time to take it all in. New wine fridge, new roof, expanded new septic, new water heater, new washer and dryer, both in main house and guest house, refurbished putting green, ev charger and fully furnished.

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