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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4929 Stargazer Drive Happy Jack, AZ 86024

$2,695,000
4 Beds
6 Baths
5,251 SqFt
Status Active
MLS # 6699883
Property Type Single Family Residence
Price Type --
This STUNNING mountain estate sprawls across 9.36 acres of tranquil, picturesque land nestled within the lush forests of Timber Ridge Ranch in Happy Jack, AZ. Comprising a magnificent 4051 SqFt. Pioneer custom log home as the main residence, alongside a spacious 4-car garage and a charming 2-bedroom guest house spanning 1200 SqFt, this property offers unparalleled luxury and serenity. Stepping through the custom 4x8 cedar front door marks the beginning of an extraordinary journey through this rare log home. Massive, handcrafted log columns and beams adorn the open and welcoming great room, showcasing the unique character of the logs with scars from actual forest fires and lightning strikes... Towering with a 32-foot cathedral ceiling, the floor-to-ceiling field stone fireplace make a majestic focal point, while a wall of triple pane glass offers breathtaking views of the rear patio, pond, and stream. The seamless open floor plan effortlessly blends the kitchen and bar area, featuring distinctive granite counters, custom Starmark kitchen cabinets, and top-of-the-line stainless steel appliances including Wolf and Subzero. Upstairs, a spacious game room and office area with a full bath and steam mist shower provide additional entertainment and relaxation space. Across the 6-inch concrete driveway stands a 1400 Sq Ft. enclosed 4-car garage with a half bath, utility sink, and plenty of storage! The 1200 SqFt guest suite above the garage boasts 2 bedrooms, a full bathroom, kitchenette and plenty of living space- making it perfect for entertaining out of town guests, gaining additional rental income, or creating your own unique space such as an office or gym! All buildings boast durable metal roofs, and Timber Ridge Ranch is an esteemed subdivision renowned for its pride of ownership. With all power lines underground and a nearby fire district station featuring 24-7 paramedics and a med-evac heliport within a mile, this property ensures both luxury and safety.

7120 E Kierland Boulevard Unit 1203 Scottsdale, AZ 85254

$2,695,000
2 Beds
2.5 Baths
2,000 SqFt
Status Active
MLS # 6725497
Property Type Apartment
Price Type --
Enjoy stunning MOUNTAIN VIEWS in this 2 bed, 2.5 bath penthouse unit at Optima Kierland. With 2000 sqft of luxurious space, unit offers 2 master suites, den, spacious kitchen, family & dining rooms. Top notch finishes include wide plank oak flooring, 10 ft ceilings, quartz counters, Bosch appliances, & Wolf induction cooktop. Tons of nature light inside with floor to ceiling windows & 400 sqft of outdoor space. Optima Kierland offers the ultimate in urban luxury lifestyle living within walking distance to shops & dining at Kierland Commons & Scottsdale Quarter. Amenities include basketball, electronic driving range, exercise facility, rooftop pool, concierge, & more. Unit comes complete with 2 parking spaces & storage unit. Come join the Optima Kierland club & lifestyle!

5434 E Lincoln Drive Unit 35 Paradise Valley, AZ 85253

$2,695,000
2 Beds
2.5 Baths
2,881 SqFt
Status Active
MLS # 6707840
Property Type Single Family Residence
Price Type --
Welcome home to the prestigious guard-gated community of Colonia Miramonte. This charming residence features 2 bedrooms, 2.5 baths, and a spacious office, all meticulously maintained and upgraded by the current owner. Nestled next to the JW Marriott Camelback Inn, this move-in-ready home offers exclusive resort-style living in the heart of Paradise Valley. As a resident, you'll enjoy a host of luxurious benefits, including discounts at the resort's acclaimed restaurants and the convenience of room service delivered directly to your door. Experience the perfect blend of comfort, elegance, and convenience in this beautiful home. Don't miss the opportunity to explore this listing in Colonia Miramonte. Come and see for yourself what makes this community so exceptional.

5101 N Casa Blanca Drive Unit 235 Paradise Valley, AZ 85253

$2,695,000 - 3Br/3Ba -  for Sale in Casa Blanca 2 Lot 201-238 Amd, Paradise Valley
Open House
$2,695,000
3 Beds
2.5 Baths
2,130 SqFt
Status Active
MLS # 6754435
Property Type Townhouse
Price Type --
In the exclusive enclave of Casa Blanca stands a truly exceptional residence unlike any other! This single-level home underwent a comprehensive transformation, where it was taken down to its shell and meticulously redesigned. Now boasting an exquisite great room that seamlessly flows onto a patio with views of Camelback Mountain, this home is a testament to luxury living. The attention to detail is unparalleled, featuring gorgeous finishes such as limestone flooring, elegant steel doors and windows and an incredible primary closet. Salvaged antique doors from a historic Masonic temple, sleek black-lacquered doors and trim, and sterling silver door hardware further enhance the allure of this special home.

1 Sky Ridge Court Sedona, AZ 86336

$2,680,000
4 Beds
5 Baths
2,995 SqFt
Status Active
MLS # 6595623
Property Type Single Family Residence
Price Type --
Spectacular to be built custom home in Sky Ridge Estates, Sedona's newest subdivision in the heart of Sedona. Beautiful panoramic view hilltop lot on the ridge with North/East/South facing panoramic views. Four en-suite masters. Short walk to the new town square, city park and museums, Tlaquepaque, high-end shopping and dining, Los Abrigados Spa resort, restaurants, gym, lit tennis courts, and Oak Creek front park available for membership. Presently in design(rendering and floor plans only) stage to break ground after completion of roads and utilities currently underway ). Guest houses may be able to be added. This home will break ground after the completion of the roads and utilities presently underway. A guest house may be added. The home can be completed in 12-18 months. The subdivision, with its approved status, is making significant progress with the ongoing construction of roads and utilities. The private club and gates are currently being submitted to the city for approval. A buyer-builder program is in place with renowned architectural firm and builder PHX Architecture phxarch.dot com Erik B. Peterson and Galloway Custom Homes Paul Galloway, Gallowayrealty.dot com. Call for details. The owner/seller is an AZ active licensed real estate broker, general contractor and developer.

34755 N 51st Street Cave Creek, AZ 85331

$2,656,830
2 Beds
1 Bath
893 SqFt
Status Active
MLS # 6699438
Property Type Single Family Residence
Price Type --
WOW! A massive 10,000-square-foot shop with an RV garage and extensive parking is ideal for a car collector or anyone looking for a high-quality building and location for their hobby. Nestled on a vast 2.5-acre lot, this 2-bedroom property captivates with its stone-accented facade and desert landscape. Inside, tile flooring and a welcoming great room create the perfect setting for entertainment. Kitchen is equipped with wood cabinets, crown molding, stainless steel appliances, granite counters, recessed lighting, a pantry, and a breakfast bar peninsula. Both bedrooms offer comfortable sleeping quarters and ample closet space. Backyard includes a patio. Enjoy stunning mountain views and easy access to nearby restaurants, shopping, and more. Don't miss out!

370 W Navajo Road Munds Park, AZ 86017

$2,650,000
3 Beds
3.5 Baths
2,948 SqFt
Status Active
MLS # 6714268
Property Type Single Family Residence
Price Type --
Life dosen't get any better than the lifestyle offered in this extremely well built, New ICF, Energy Efficient, custom home. Quality and charm throughout plus Gorgeous fireplace, flooring,cabinetry, granite, and open great room. Kitchen boasts Stainless Steel Appliances, Pantry, Island & Custom Knotty Alder Cabinets. Spacious Master Suite, 2 Guest bedrooms and 3.5 baths. There are 2,486 sq. ft. of covered decks surrounding the home which provide Spectacular Golf Course, Panoramic and Million dollar views. Even the Drive-Through Garage is amazing and boasts 2,948 sq.ft., offering Ten-car storage, Workshop and an Elevator to take you to the main living quarters. Home is on a paved, private road and sits on .87 acre lot and including an RV/dump station. Sellers has blueprints for an RV Garage addition on the east side of the house with one bedroom living quarters. Infrastructure is ready to go with electric and sewer.

3810 E Devonshire Avenue Phoenix, AZ 85018

$2,650,000 - 4Br/4Ba -  for Sale in Kachina Gardens, Phoenix
New
$2,650,000
4 Beds
3.5 Baths
3,653 SqFt
Status Active
MLS # 6758748
Property Type Single Family Residence
Price Type --
Welcome to this stunning 4-bedroom, 3.5-bathroom contemporary home in Phoenix! With 3,653 sq. ft. of beautifully designed living space, this home blends modern elegance with comfortable living. As you approach, you'll be greeted by the sleek desert front landscaping, featuring synthetic grass and a yard watering system for easy maintenance. Step inside to find a spacious interior with a mix of wood, stone, and carpet flooring, highlighted by a grand staircase, vaulted ceilings that enhance the open feel of the home. The living room boasts a cozy fireplace, perfect for relaxing evenings and open the beautiful accordion doors to create an outside entertaining space. The chef's kitchen is a standout feature, equipped with a walk-in pantry, kitchen island, and granite countertops. The eat-in kitchen layout is perfect for casual dining, with ample space for family and friends. The master suite, located upstairs, offers a full bathroom with a separate shower and tub, double sinks, large, custom walk-in closet and mountain views that can be enjoyed from the comfort of your private balcony. An additional bedroom downstairs provides flexibility for guests or a home office, and the upstairs laundry adds convenience to daily living. The outdoor space is an entertainer's dream, featuring several patios, built-in outdoor kitchen area with BBQ and refrigerator, multiple fire features and a sparkling private pool with 3 custom spillways and multi-color LED lighting. The backyard offers desert landscaping with synthetic grass, all maintained with a yard watering system, creating a serene and low-maintenance oasis. With an RV gate and parking, 2 garage spaces, and 2 additional slab parking spots, there's plenty of room for all your vehicles and toys. This home underwent extensive updates in 2018, including the flooring, wiring, plumbing, heating, cooling, roof, kitchen, bathrooms, and pool, ensuring a move-in-ready experience. 3rd bay garage was converted to an air-conditioned workout room. Located in a desirable community with mountain views, this property offers the best of luxury living in Phoenix.

3703 N Kachina Lane Scottsdale, AZ 85251

$2,650,000
4 Beds
4.5 Baths
3,359 SqFt
Status Active
MLS # 6749727
Property Type Single Family Residence
Price Type --
2 MONTHS from COMPLETION. This stunning new build offers luxury living in one of Scottsdale's most sought-after neighborhoods. Spanning 3,359 square feet, this single-family home sits on a spacious 12,000-square-foot lot, providing plenty of room for both indoor and outdoor enjoyment. With 4 bedrooms and 5 bathrooms, the home is thoughtfully designed for comfort and privacy, making it perfect for families or entertaining guests. The modern finishes throughout the home include distinctive cabinetry, sleek and stylish, offering ample storage and a contemporary aesthetic. Top-of-the-line amenities feature Trane A/C units for efficient climate control, and a premium Pella door and window package, ensuring energy efficiency and elegant design. An expansive covered patio offers ideal outdoor living space, perfect for year-round shade and comfort. The brand new pool and spa add a touch of resort-style luxury to your everyday life, making this home a perfect blend of modern design and high-end finishes. Don't miss your chance to own this exceptional property in Scottsdale.

10040 E Happy Valley Road Unit 286 Scottsdale, AZ 85255

$2,650,000
4 Beds
5.5 Baths
4,745 SqFt
Status Active
MLS # 6753773
Property Type Single Family Residence
Price Type --
IMMEDIATE GOLF MEMBERSHIP AT CLOSE OF ESCROW! Architecturally designed by the late, John Rattenbury of Taliesin Architects, this remarkable home is a work of art in the ''Wright Style.'' A classic example of ''organic architecture,'' the home nestles into the site becoming a natural part of the land. The design of the living area is based on space flow rather than an arrangement of rooms. Located in the private golf and recreation community of Desert Highlands with world class community amenities including the Jack Nicklaus Signature 18 hole golf course, an award winning tennis facility, an owners club house with fine and casual restaurants and a state of the art fitness center.

4945 E Mountain View Road Paradise Valley, AZ 85253

$2,650,000
5 Beds
5 Baths
3,815 SqFt
Status Active
MLS # 6731577
Property Type Single Family Residence
Price Type --
Paradise Valley Custom Home Awaiting Your Vision. Discover the potential of this custom home located on a spacious 1.03-acre corner lot in the prestigious town of Paradise Valley. Designed for luxury and comfort, this home offers views of the Phoenix Preserve and Mummy Mountain from its east side, making it a true desert oasis. With 5 bedrooms and 5 full baths, this expansive home provides ample space for family and guests. The four-car garage offers plenty of room for vehicles and storage. The remodeling process has already begun, allowing you to complete it with your personal touches and finishes creating your perfect home. Wolf oven and Wolf gas range, hardwood cabinets/floors, granite countertops, Bosch dishwasher, and wine cooler. The backyard is an entertainer's dream, featuring a PebbleTec pool and a large covered patio. Enjoy the mountain views as you relax and unwind in this serene setting. Designed for family living, the home offers a split floor plan, providing privacy and convenience for all family members. Don't miss the opportunity to make this home your own and experience the best of Paradise Valley living.

3617 N Granite Ridge Road Buckeye, AZ 85396

$2,650,000
5 Beds
5.5 Baths
5,317 SqFt
Status Active
MLS # 6753527
Property Type Single Family Residence
Price Type --
Location, location, location! Stunning residence on the Signature 12th Hole of The Verrado Golf Club! The lot next to the home is available for purchase for added value or privacy. The 3-car garage with an extra long driveway lets you bring all your toys, trucks, and cars. Impressive interior showcases the finest quality materials and impeccable craftsmanship throughout. Roman pillars, wood and stone floors, Canterra Stone fireplaces in the right areas, multiple French doors, a high beamed ceiling in the family room, and surround sound speakers. Chef's kitchen has granite counters, wood cabinets with crown moulding, a walk-in pantry, a big island with a breakfast bar, a stylish backsplash, and high-end stainless steel appliances such as wall ovens. Lot next to property available. Wet bar, wine cellar, and butler's pantry for convenience. Large bedrooms, walk-in closets, office/library, and upscale bathrooms. Each room is a work of art! Grand main retreat has a fireplace, backyard access, and a spa-like ensuite boasting a jetted tub, double vanities, and a big tiled shower with dual shower heads. The entertainer's backyard allows you to enjoy the impressive mountain and golf course views from every angle! Covered patio, blue pool, relaxing spa, built-in BBQ, fireplace, dog run, exterior shower, above-ground hot tub, and putting green complete the backyard. Words don't make it justice!

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