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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4570 E Calle Tuberia -- Phoenix, AZ 85018

$2,550,000
4 Beds
4 Baths
3,079 SqFt
Status Active
MLS # 6753119
Property Type Single Family Residence
Price Type --
Location, Location Location! Welcome to this beautifully updated 4-bedroom, 3.5-bath home located in the highly sought-after Arcadia Proper neighborhood. This home features a desirable split floor plan, providing privacy and convenience for all. 4 bedroom, 3.5 bathrooms, flex space that could be used as an office or playroom, open concept kitchen and a large great room. When you step inside you first notice the 10-foot ceilings and rich hardwood oak floors that flow throughout the home. The kitchen is equipped with a new Sub-Zero refrigerator, dishwasher and a reverse osmosis (RO) water system. Entertainment is made easy with five TVs, two enhanced by Sonos sound bars for a superior audio experience. The gated front courtyard offers the perfect vantage point for watching stunning Arizona sunsets.The backyard features a custom-built fireplace, BBQ, and bar area. The space is shaded by mature trees and features low-maintenance artificial grass, creating an inviting and comfortable outdoor oasis. Additional highlights include a spacious garage with ample storage and an EV charger. Walking distance to the new Global Ambassador Hotel, The Henry, Buck & Rider and some of Phoenix's best restaurants. Experience this exceptional property in Arcadia for yourself!

13061 N 80th Place Scottsdale, AZ 85260

$2,550,000
4 Beds
3 Baths
3,303 SqFt
Status Active
MLS # 6744439
Property Type Single Family Residence
Price Type --
Discover LUXURY in this BEAUTIFULLY updated 3,303 SF home on a sprawling 35,140 SF corner lot. Featuring 4 bedrooms, including 2 master suites, and 3 bathrooms, this residence offers both elegance and comfort. Enjoy a spacious layout with a formal living & dining room, a family room with a fireplace, and a gourmet kitchen with dual islands. The backyard is an entertainer's dream with a private pool, above-ground hot tub, sports court, and putting green. Ample driveway space completes this exceptional home. A MUST SEE!

12315 W Cooper Morgan Trail Prescott, AZ 86305

$2,550,000 - 3Br/5Ba -  for Sale in Talking Rock Ranch Phase 1 A Amd, Prescott
New
$2,550,000
3 Beds
5 Baths
4,400 SqFt
Status Active
MLS # 6759691
Property Type Single Family Residence
Price Type --
Experience unparalleled living in this exquisite custom home, perfectly situated in Talking Rock Ranch, ready for your personal interior selections. Designed to cater to diverse lifestyles—from car collectors to golf enthusiasts and social butterflies—this home offers an exceptional opportunity to craft your dream sanctuary. Enjoy breathtaking, unobstructed views of Granite Mountain, ensuring that your scenic backdrop remains untouched by future developments. Please note that many of the photos included are renderings for visual assistance and may depict options not included in the final build. Continued... Key features of this stunning residence include:

6530 N 29th Street Phoenix, AZ 85016

$2,550,000
5 Beds
4.5 Baths
4,324 SqFt
Status Active
MLS # 6746151
Property Type Single Family Residence
Price Type --
Meticulously remodeled in Biltmore Hillside Villas! 24-Hr Guard-Gated Community! Enjoy 28-foot ceilings, natural light, light oak hardwood flooring and motorized solar shades throughout. Wolf appliances and quartz countertops. Junior Suite/Office on first level with en-suite bathroom. Spacious Primary Suite on the second floor with dual closets and MOUNTAIN VIEWS from the spa-inspired bathroom and private patio. Three additional bedrooms upstairs. Low maintenance backyard with one of the largest swimming pools in the neighborhood. 3 car garage, downstairs laundry and lots of storage space. Enjoy tennis courts, hiking trails and proximity to golf, dining and shopping!

5671 S Joshua Tree Lane Gilbert, AZ 85298

$2,550,000
4 Beds
4.5 Baths
3,701 SqFt
Status Active
MLS # 6740603
Property Type Single Family Residence
Price Type --
Welcome to Stone Crest Luxury Living! This stunning 4-bedroom, 4.5-bathroom home with an additional den offers an open-concept design and a desirable floorplan, perfect for modern living. The gourmet kitchen is equipped with high-end Wolf appliances and an LG Signature Kitchen Series fridge, making it a chef's dream. Enjoy breathtaking mountain views from your windows while benefiting from the home's beautifully landscaped front and backyard. Entertain guests with ease using the built-in BBQ and relax in your brand new private pool. The backyard also features a built-in trampoline, making it a great space for fun and relaxation. Inside, you'll find window treatments throughout, providing both style and privacy. Located in a community known for its excellent schools, this home offers the perfect blend of comfort, luxury, and convenience. Don't miss your chance to own this exceptional property in a prime Gilbert location!

12028 N 119th Street Scottsdale, AZ 85259

$2,550,000
3 Beds
3.5 Baths
4,480 SqFt
Status Active Under Contract
MLS # 6674969
Property Type Single Family Residence
Price Type --
Welcome to the Ancala Country Club lifestyle, with the added bonus of a home perfectly perched above the golf course, boasting impeccable 180 degree vistas of Camelback Mountain as well as city lights. The inviting courtyard will welcome you into the truly open, great room floorplan, perfect for entertaining. The spectacular, unobstructed views will lure you to the expansive, wrap around, covered back patio, complete with professional misting system and remote retractable shades , overlooking both the golf course, and the sparkling private pool/spa and waterfall. The home is handsomely appointed with cherry cabinets, granite counter tops, chef's stainless steel appliances with gas cooking and double ovens, and travertine flooring. The floorplan features a split primary suite, complete with sitting area and spa-like bath, complete with steam shower. Guests will enjoy two private, ensuite guest rooms. Fully owned solar is an added bonus. All this, and country club amenities, including manned guard gate, golf course, tennis courts, fitness room, kids park, club house and community pool (use of clubhouse, pools, tennis courts, fitness room, and golf course require club membership). WELCOME HOME!

2460 S Pinyon Jay Drive Unit 24 Flagstaff, AZ 86005

$2,548,000
3 Beds
3.5 Baths
3,221 SqFt
Status Active
MLS # 6743808
Property Type Single Family Residence
Price Type --
Home is not yet under construction. The Kaibab plan is mostly single level and keeps owners within reach of the alpine environment around them. Center-sliders in the family room open to a spacious patio with breath taking views of the surrounding Ponderosa Pines. This open three-bedroom floorplan with an additional upper-level family room offers privacy and commune in an unmatched natural setting. Incentives are currently being offered. Please call the Pine Canyon Sales Office for more information.

398xx N Old Stage Road Cave Creek, AZ 85331

$2,500,000
3 Beds
4 Baths
3,517 SqFt
Status Active
MLS # 6577386
Property Type Single Family Residence
Price Type --
New Build To Suit Custom Home on 8.215 acres. All paved roads. 3,517 sqft transitional floor plan. Showcasing huge living areas with walls of retractable doors leading to the outdoor spaces. Open floor plan offers a master bedroom split, stone & wood floors, fireplace in the great room and state of the art appliances. 4 car garage and with patios total at 5,228 square feet under roof. Secluded and Exclusive, No HOA. Plans and finishings can be modified to suit your needs and lifestyle. Upgrades / Options includes Heated pool & spa, fire pit, along with an outdoor kitchen. A show stopping feature-ideally designed for Arizona indoor/outdoor living. Minutes to historic Cave Creek. Enjoy the peaceful desert and the convenience of being close to amenities with a private setting.

38520 N 103rd Place Scottsdale, AZ 85262

$2,500,000
4 Beds
4.5 Baths
4,481 SqFt
Status Active
MLS # 6695745
Property Type Single Family Residence
Price Type --
This captivating home, tucked into Desert Mountain's village of Eagle Feather, radiates exterior sophisticated charm and welcomes the impressive soft contemporary open, great room, split floorplan of the interior. Sitting adjacent to vast open space, the site provides stunning views of natural Sonoran Desert, colorful sunsets, mountains and city light sparkles. Exterior allure abounds with its tiled roof sections, graceful angles, and circular dimensions, creating a harmonious fusion of style and function. As you approach, the paver driveway leads you through a gated courtyard, beckoning you to experience the seamless transition between indoor and outdoor living. The charming ambiance is enhanced by a delightful three-tiered water feature, surrounded by a lush garden of exotic cacti, verdant trees, and fragrant shrubs, providing the perfect setting for relaxation and rejuvenation. Step through the grand metal and glass door into a spacious, light-filled interior that exudes luxury and comfort at every turn. The expansive great room serves as the focal point, offering unparalleled views and access to the outdoors, complemented by two striking floor-to-ceiling stacked stone walls adorned with a linear fireplace and mounted TV. For the culinary enthusiast, the kitchen is a true delight, featuring ample granite counter space, a generously sized island with bar seating, and high-end Viking appliances, all seamlessly integrated into the open-concept design that connects effortlessly to the formal dining area and circular casual dining space. Retreat to the sumptuous primary ensuite, situated in the South wing, a retreat unto itself, boasting a palatial layout complete with fireplace, mounted TV, circular sitting area with serene views, and access to a private patio. The spa-like bathroom is equally impressive, offering a lavish soaking tub, dual vanities, and a spacious walk-in shower, along with two designer closets designed to indulge the senses. A versatile office, studio or guest bedroom provides flexibility to accommodate various lifestyle needs. For family and guests two additional ensuites, one with pool access, are thoughtfully positioned in the North side of the home, ensuring peaceful privacy. For the utmost in outdoor enjoyment saunter out to the magnificent outdoor oasis. The stack stone circular spa spilling into the curvilinear lines of the negative edge pool invite the serene yet dazzling views. The covered living and dining spaces, pool side sunning spaces and built-in grill and bar provide hours of pleasure day and night. For cooler nights the stacked stone firepit entices star gazing into the magical skies. Throughout the home, attention to detail is evident, with design features such as geometric cove-lit ceilings, mitered windowpanes framing lush views, and luxurious finishes including stacked stone interior walls, tiled floors, low-pile carpeting in the bedrooms, and granite counters and vanities. Located in the prestigious Desert Mountain community, with a wealth of amenities, including 7 exclusive clubhouses, 7 championship golf courses, 20 miles of hiking trails, and more, promising a lifestyle of unparalleled luxury and recreation. Embrace the epitome of desert living and make this extraordinary residence your own, where every day is an opportunity to savor the beauty and tranquility of Desert Mountain. This property does not have a membership to The Desert Mountain Club available. Waitlists apply for membership.

414 Peace Garden Path Clarkdale, AZ 86324

$2,500,000
5 Beds
5 Baths
3,787 SqFt
Status Active
MLS # 6737569
Property Type Single Family Residence
Price Type --
Welcome to your serene and modern retreat with five well-appointed apartment suites nestled in the heart of Clarkdale and within walking distance of the charming shops and restaurants of Old Town Cottonwood. This exquisite five-acre property offers breathtaking views of the Verde River and the stunning red rocks of Sycamore Canyon, providing a picturesque backdrop for an unparalleled living experience. Step outside onto the expansive portico and immerse yourself in the beauty of nature, while enjoying outdoor living at its finest. Host unforgettable evenings under the starlit sky with friends and family, or take a leisurely walk down the trail to the river.

7300 N Snow Bowl Road Flagstaff, AZ 86001

$2,500,000
3 Beds
2 Baths
2,000 SqFt
Status Active
MLS # 6734405
Property Type Single Family Residence
Price Type --
Discover the beauty of this stunning home, perfectly nestled amidst the majestic San Francisco Peaks. Set on an expansive 11.79-acre lot backing up to the Coconino National Forest, this thoughtfully designed 1,921 sq ft residence features 3 bedrooms and 2 bathrooms. Inside, every window offers breathtaking views, enhanced by newly added remote-controlled Hunter Douglas shades. The kitchen is a chef's dream, equipped with a top-of-the-line Fisher and Paykel double dishwasher, a new stainless steel double oven, and a deep copper sink. Flagstone and hickory floors throughout add a touch of rustic elegance. Beyond the main house, you'll find a 2,814 sq ft heated barn with 6 oversized horse stalls, Nelson waterers, a workbench, and a tack room with water. The property also includes two large turnout areas, one featuring a competition dressage arena, and the other a jumping arena. There is also plenty of room for a pasture. Two wells provide ample water supply for the property. Conveniently located less than a mile from Snowbowl and less than 5 miles from town, this property offers unparalleled accessibility. Enjoy unlimited horseback riding with direct access to the National Forest from your backyard. Bring your horses out of the heat to this cool mountain retreat. With no HOA restrictions, you have the freedom to personalize and utilize the property as you wish. Experience the perfect blend of luxury, privacy, and equestrian paradise when you tour this remarkable property.

19 Navajo Trail -- Sedona, AZ 86336

$2,500,000
4 Beds
5 Baths
3,810 SqFt
Status Active
MLS # 6750912
Property Type Single Family Residence
Price Type --
Welcome to Hacienda de los Sueños, a stunning 3,810 SqFt architectural masterpiece on a wooded acre with breathtaking VIEWS of Cathedral Rock. Highlights include hand-distressed pine floors, arched 1870's India Palace entry gates, and 1880's Kentucky church stained glass windows. The gourmet kitchen features custom cabinetry, granite island, and top-tier appliances. Enjoy a state-of-the-art home THEATER, pottery STUDIO, luxurious GUEST CASITA, and a saltwater POOL/SPA with SOLAR heat. The master suite offers a gas fireplace, whirlpool tub, and scenic woodland views. Improvements: new roof (2020), appliances and HVAC systems (2021), paved driveway (2022), solar panels (2023), and new pool filtration (2024). Nestled in GATED Highland Estates, this home blends elegance with natural beauty!

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