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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5231 Hidden Hollow Road Flagstaff, AZ 86001

$2,434,000
4 Beds
3 Baths
4,756 SqFt
Status Active
MLS # 6636847
Property Type Single Family Residence
Price Type --
World-Class Property Offering Breathtaking Views of the San Francisco Peaks! 3 Parcels, Totaling Just Over 20 Acres. Minutes From Downtown Flagstaff. This is the Property You've Been Dreaming Of! Conveniently Located in Hidden Hollow - One of Flagstaff's Most Desirable Rural, Residential Neighborhoods. Hidden Hollow is Comprised of Large Acreage Parcels with Private, Custom Estate Homes - These 3 Properties Include 2 Custom-Built Homes. Both Homes Offer Dramatic Architecture and Were Built Using Attractive Native Stone, Exposed Wood, Upgraded Windows, Solid Core Doors, Vaulted Ceilings, Tile and Wood Flooring, Wood Paneling, and Were Built to Capture the Stunning Views of the San Francisco Peaks. 5231 Hidden Hollow Road has a Metal Roof, Oversized Cistern, a Semi-Detached 2-Car Garage with a Breezeway to the Main House, Extensive Use of Exposed Beams Inside and Out, and an Expansive Patio Overlooking the Mountains. 5281 Hidden Hollow Road has a Detached Storage Shed, a Private Natural Gas Meter, and Cathedral-Type Picture Windows. The 3 Properties are Heavily Treed, with a Mixture of Mature Ponderosa Pines and Oaks. Natural Rock Outcroppings, Gently Sloped Meadows, and Some Steep Terrain All Combine to Make this a Beautiful Property and an Outstanding Opportunity. Nearly 360 Degree Views Will Take Your Breath Away. While the Homes Were Crafted with Attention to Detail, Unfortunately the 2 Homes Have Suffered Pet and Environmental Damages. The Seller Requires That Agents and Buyers Review all the Attached Seller's Disclosures Before Scheduling to Show the Properties. The Seller Recommends That Agents and Buyers Take Whatever Measures They Feel Necessary to Protect Themselves From the Possible Environmental Concerns Raised in the Attached SPDS, SPDS Addendum, and Remediation Estimates When Visiting the Properties.

10931 E Whitethorn Drive Scottsdale, AZ 85262

$2,425,000
3 Beds
3.5 Baths
2,825 SqFt
Status Active
MLS # 6655790
Property Type Single Family Residence
Price Type --
Serene is brand new gated enclave of 21 cutting edge single level contemporary homes designed by Swayback Architects & Planners and built by Sonora West Development. Each Serene home brings a new definition to the ''Lock and Leave'' lifestyle with open Great Room floor plans perfect for both entertaining and everyday living. There are four different models to choose from with lavish interior finishes created by renown interior designers Est Est. This Model C has a 2 car garage and available only on lot 9. Price shown includes lot premium and 25K pool and a 25k landscape allowance, Sub-Zero & Wolf Appliances & BBQ. Backing to the North side of Pinnacle Peak Mountain in N Scottsdale, Serene is close to shopping, restaurants and over two dozen private and public golf courses. Don't miss.. your opportunity to take part in the Serene lifestyle.

11905 N 83rd Place Scottsdale, AZ 85260

$2,420,000
4 Beds
3 Baths
3,097 SqFt
Status Active
MLS # 6698056
Property Type Single Family Residence
Price Type --
Beautiful, highly desired Scottsdale Country Club East Nine. Great Location with McDowell Mountain Views, On Hole #7 of Starfire Golf Course backyard facing East, at the back of the neighborhood. Not enough sq. ft. in the house? Large lot will accommodate building an additional guest house/office/studio/adu. This 3097 sf, 4 bedroom 3 bath home has been remodeled top to bottom - inside and out! High end details and special attention paid throughout. Luxury finishes and thoughtful design. Wonderful Kitchen with great views and lights and huge island. Bathrooms are enviable!! Separate beverage/coffee bar with bev. frig and additional wine/wet bar with wine cooler. Extra touches such as separate doggie shower and charging station/drop zone for your electronics. Fabulous outdoor entertaining area. The list goes on and on. Come visit to appreciate it fully.

5025 W Six Claims Rd. -- Prescott, AZ 86305

$2,400,000
3 Beds
4 Baths
2,881 SqFt
Status Active
MLS # 6606612
Property Type Single Family Residence
Price Type --
MOUNTAIN MODERN RANCH - Breaking Ground in June. LOCATED WITHIN THE NATIONAL FOREST ON PRIVATE LAND, GATED COMMUNITY. NO HOA. This beautifully maintained - yet unique property will appeal to the discriminating buyer who values maximum privacy with upscale and yet uncomplicated taste! 12 minutes to Prescott downtown Courthouse on private road.

2654 E Warbler Road Gilbert, AZ 85297

$2,400,000
5 Beds
4.5 Baths
4,950 SqFt
Status Active Under Contract
MLS # 6722957
Property Type Single Family Residence
Price Type --
Welcome to the epitome of luxury living at Whitewing at Germann Estates in Gilbert, Arizona! Nestled on a half-acre lot within Gilbert's prestigious guard-gated community, this custom-built residence features 5 spacious bedrooms, 4 full baths, and a dedicated pool bath. One oversized bedroom offers versatile potential, perfect for a variety of alternative uses. The home also includes a separate private office, providing an ideal environment for working from home or using as an additional flex space. Ample parking is provided with a 3-car garage, plus a separate, oversized garage ideal for boat or RV storage, a car collection, or a home gym. Step inside and be greeted by soaring ceilings and an abundance of natural light, highlighting the stunning French Oak flooring... throughout the main living areas. The open-concept design seamlessly connects the gourmet kitchen, casual dining area, and expansive living room, perfect for both intimate family gatherings and grand-scale entertaining. The living room features a cozy fireplace, adding warmth and charm to any occasion. The gourmet kitchen boasts quartz countertops, high-end Sub-Zero and Wolf appliances, including a 6-burner gas range with double oven, and undercounter refrigerator drawers. The spacious kitchen island includes a separate ice maker, additional sink, and plenty of extra storage space. For more formal occasions, enjoy the sophistication of the formal dining room, framed by a massive, vaulted ceiling and towering window with unobstructed views of the pool and spa. Retreat to the owner's suite with its spacious bedroom and spa-like bathroom, where luxury and comfort meet. Adjacent to the laundry room, the craft room provides ample storage and serves as your blank canvas to create the perfect space for your unique needs. Escape to your private oasis in the resort-style backyard, featuring an extended covered patio, a stunning pool and spa, enhanced with bistro lighting, and built-in BBQ for quiet relaxation or continued outdoor entertaining. Schedule your private tour today and discover this true masterpiece of design and comfort. Welcome home!

11426 E Quail Lane Cave Creek, AZ 85331

$2,400,000
4 Beds
4.5 Baths
3,861 SqFt
Status Active
MLS # 6729200
Property Type Single Family Residence
Price Type --
Glass dominant custom new build with total privacy and forever views of Tonto National Forest, mighty Four Peaks, Weaver's Needle and all connecting ranges. Sleek and stylish contemporary in cool neutral tones with stainless steel appliances and 6 CAR GARAGE with space for more if you wish. Intelligent and open floor plan with 4 bedrooms (including casita) and 4.5 bathrooms offering spacious comfort for all in residence. Kitchen designed in a clean white palette with an island large enough for both prep and service. 6 burner gas grill with griddle and side by side 60 inch refrigerator/freezer for the gourmand in mind. Gunmetal shades of grey high gloss Italian porcelain floors throughout. Spray foam insulation in every wall and and ceiling, all en suite bedrooms with walk in closets and ample storage in every living space. Designed with an ideal Southern exposure/orientation to offer intentional interior climate controlled benefits throughout the year. Tonto Hills is a very private, equestrian deeded gem of a community at an elevation of 3800 feet enjoying cooler temperatures and a forever breeze on the mountain. No air traffic, countless hiking trails/landmarks and a neighborhood restaurant within walking distance with views that will astonish you and your guests. Plenty of room for a pool that could be seated for your privacy in mind capturing the panorama and moonscape views before you...

20104 E Melissa Place Queen Creek, AZ 85142

$2,400,000
5 Beds
4.5 Baths
5,245 SqFt
Status Active
MLS # 6699021
Property Type Single Family Residence
Price Type --
Welcome to 20104 E Melissa PL, an exquisite retreat nestled within the prestigious Pecans Community of Queen Creek, AZ. This captivating residence boasts luxurious living across 5,245 square feet, situated on an expansive 33,685 square foot cul-de-sac lot. Step inside to discover a haven of sophistication and comfort, where every detail has been meticulously crafted to elevate your lifestyle. With 5 bedrooms and 4.5 bathrooms, including a grand master suite, ample space ensures privacy and relaxation for every member of the household. The heart of the home is the chef's kitchen, where culinary dreams come to life amid high-end stainless steel appliances and premium finishes. Entertain effortlessly in the spacious living areas, where abundant natural light creates an inviting ambiance for gatherings both large and intimate. Outside, a private oasis awaits, complete with a sparkling diving pool and rejuvenating hot tub. Host unforgettable al fresco soirées in the built-in BBQ and outdoor kitchen area, or gather around the firepit for cozy evenings under the stars. With a 4-car garage and an additional RV garage, there's plenty of room for your vehicles and outdoor toys. Experience the epitome of luxury living in Queen Creek, where this remarkable residence offers the perfect blend of elegance, comfort, and convenience. Don't miss your chance to make this dream home your own.

5580 E El Sendero Drive Cave Creek, AZ 85331

$2,400,000
4 Beds
4.5 Baths
4,795 SqFt
Status Active
MLS # 6611984
Property Type Single Family Residence
Price Type --
Located perfectly between Cave Creek and Carefree, this new custom construction home will be built to suit the desires of even the most discerning buyer. With 4,795 of combined indoor and outdoor covered living spaces, you'll get the absolute most out of your home's oasis and the spectacular views of Black Mountain. The large sliding glass walls open the generously sized great room to the expansive covered patio that overlooks the pool & spa, built-in grill, and the natural desert landscaping behind. The split living plan offers bedrooms on both ends, with all living, entertainment and dining areas in the heart of the home. 10 and 12 foot ceilings throughout will give a grand and open feeling to this very well thought out plan... and with luxury appliances, lighting accents, and high-end custom cabinetry, you will fall in love as you see your dream home come to life. Buyers will have their choice of finish options and will have a great time working with this highly experienced, quality builder. Enjoy shopping, entertainment, dining and live music any day of the week, because Cave Creek, Scottsdale, Carefree and Desert Ridge are all within minutes. You'll get the best of the Sonoran Desert and the quaint lifestyle of a small town, but with all of the amenities of the big city. Don't miss your opportunity to create your very own oasis in the desert!

3511 E Rose Lane Paradise Valley, AZ 85253

$2,400,000
5 Beds
5 Baths
3,983 SqFt
Status Active
MLS # 6754159
Property Type Single Family Residence
Price Type --
Sitting on a quiet street in Paradise Valley, this north/south facing 4,000 sq ft house on a 1 acre lot is in a lovely neighborhood. The home has very inviting white vaulted angled ceilings throughout the living room, family room and entry. It features original charm with brick walls in the kitchen, built -in shelving, 3 wood-burning fireplaces and a private dining room. The master bedroom is large and has separate his and her bathrooms. There are a total of 5 bedrooms and 5 bathrooms in the residence. It has a lovely grass yard and pool and the backyard Is enclosed by a white wall- but it is important to note that the property goes significantly beyond the back wall and goes to the neighbor's wall. This home is ready for updating and renovations with your personal touch!

3506 E Ivyglen Circle Mesa, AZ 85213

$2,400,000
8 Beds
6.5 Baths
8,103 SqFt
Status Active
MLS # 6754378
Property Type Single Family Residence
Price Type --
This rare estate spans three floors & offers the equivalent of three homes in one with 3 full kitchens. The main floor inspires w/ soaring ceilings & abundant natural light that fills both formal & casual living spaces. Here, you'll find a stunning gourmet kitchen, a guest bedroom, a full bathroom, and a private in-law suite (ADU) complete with its own office, spacious living area, garage and fully equipped kitchen. On the second floor, the master suite awaits, a luxurious retreat. Plus 2 additional bedrooms & an office, perfect for work or relaxation. The lower level offers a second ADU w/ 3 bedrooms, 1 bathroom, & its own living/dining area & kitchen— perfect for extended family or rental potential. The backyard features a pool, spa & fire pit. Room for pickleball ct. Virtually staged.

5101 N Casa Blanca Drive Unit 324 Paradise Valley, AZ 85253

$2,400,000
2 Beds
3 Baths
2,293 SqFt
Status Active
MLS # 6722426
Property Type Single Family Residence
Price Type --
''Yes Harriet, there is a garage in historic Casa Blanca!'' #324 is a beautiful single-level home with, 2 BR (split plan), 3 BA, and study. Relax in the wrap-around private garden patio with retractable awning and outdoor fireplace, designed by Charlie/The Green Room. Lovely natural light fills the Great Room with 13' ceilings and fireplace, the cozy den/studio/library, dining area, and gorgeous eat-in kitchen with quartz countertops ...all the things we love to live with. The primary suite features an enormous bath and walk-in closet, just a few steps from the charming ''read a book or swim'' pool..a happy, good mood place! The two-car garage has a sink and new epoxy floor. Enjoy the two other swimming pools, play tennis or pickle ball, or meander the walking paths and rose garden.

9233 S Krista Drive Goodyear, AZ 85338

$2,400,000
4 Beds
4.5 Baths
4,759 SqFt
Status Active
MLS # 6728156
Property Type Single Family Residence
Price Type --
Imagine, Estrella's finest, Custom Retreat, stargazing in your Cascading Waterfall, Saltwater Pool ~ Spa, Resort Backyard: Outdoor Kitchen, Travertine Covered Patio encompassing Panoramic Views w 2 Rooftop Decks! Breathtaking Courtyard entry adorned with Stone Fountain. Stunning Architecture, Exquisite Lighting & Chef's Kitchen boasts Custom Cabinetry, Thermador Appliances, Pot filler, 6 Burner Gas Cooktop w/ Griddle, Gorgeous Granite & Huge Island. Flooring w/ Inlaid Tile, Crystal Chandeliers, Central Vac, 3 Gas Fireplaces, Surround Sound. Primary En-Suite adorned with Luxurious Spa Bath. Thermador Espresso Machine. Designer Secondary Baths w/ Vessel Sinks, Gold Plated Faucets! Surround Sound. Incredible Custom Home located in the Summit of Estrella Mountain Ranch Consisting of 4 bedrooms, 4.5 baths, large office with fireplace, game room with wet bar. 2 roof top decks along with huge windows throughout the house provide breathtaking mountain views from every angle. Paved private drive with ample parking. Custom ironwork & lighting - gorgeous entry w/courtyard & stone fountain. Beautiful woodwork -Chef's Kitchen w/custom cabinetry & built-in Thermador appliances, pot filler, 6 burner gas cooktop w/ griddle, Level 6 granite, huge island. Remarkable flooring w/ inlaid tile - Luxurious spa master bath with jetted tub / built-in-media controls & Thermador espresso machine. Designer secondary baths w/ vessel sinks - central vac, 3 gas fireplaces, surround sound throughout. Spectacular Saltwater pool w/ spa & waterfall. Spacious covered patios w/ Travertine flooring & pool decking, built-in BBQ All of this within the exciting community of Estrella Mountain Ranch with its 72 acres of lakes, 3,000 sq ft fitness center overlooking the 12,000 sq ft water-park with water slides and heated lap pool. Estrella Mountain residents enjoy over 40 acres of parks that include pathways, pavilions, an amphitheater, basketball, tennis, pickle-ball and volleyball courts. On the lake north lake is the Yacht Club that offers sailboats, paddle boats, canoes, and kayaks. Over 30 miles of hiking and well-designed mountain biking trails. Estrella is also home to a par-72, 18-hole championship golf course designed by award-winning Nicklaus Design.

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