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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8535 E Dog Leg Drive Carefree, AZ 85377

$2,199,400
5 Beds
6 Baths
4,680 SqFt
Status Active
MLS # 6672260
Property Type Single Family Residence
Price Type --
This magnificent home was designed and the residence of the renowned golf course designer Pete Dye, epitomizes the luxury living experience in Carefree. With breathtaking views from every room and a host of premium features, this residence offers both a serene retreat. While this home could certainly make a wonderful primary residence the current owners use as a 2nd home and it's an established and profitable vacation rental with gross monthly revenues from 10K-22K in gross income per month. It's a turnkey business opportunity. PLUS! You will find convenient guest quarters, including a beautiful stone fireplace and a functional kitchenette. Ideal for visitors or as a rental opportunity, this inviting space provides comfort & convenience in a picturesque setting. Enjoy hosting memorable gatherings in the amazing backyard with an open patio & a crystal-clear swimming pool that is great for the summer! What are you waiting for? This gem won't disappoint!

23227 S 180th Street Gilbert, AZ 85298

$2,199,000
3 Beds
2 Baths
2,512 SqFt
Status Active
MLS # 6736051
Property Type Single Family Residence
Price Type --
ALMOST 5 ACRES WITH THIS RARE DOUBLE LOT! Sales Price includes the 2.43 acres of the subject property including home on it as well as the 2.43 acre lot to the North. Got Horses? Newer stables with multiple Pastures connect with the gate. Entry road in the middle makes the perfect grand entrance The stated lot size of 211614 SF is for both lots.

35411 N 50th Street Cave Creek, AZ 85331

$2,199,000
4 Beds
4.5 Baths
5,000 SqFt
Status Active
MLS # 6733910
Property Type Single Family Residence
Price Type --
Custom Santa Fe home on 2.5 acres Horse Property, 4Br, 4.5 Ba, 5000+ sq ft home, 22' ceilings in Living Room/Kitchen with Box Beam ceilings. Slate flooring with wood inlays, bedrooms are carpet. 3 gas fire places, Master shower is an experience. Master bedroom is large. Property has natural gas. 2 laundry rooms, Family room, Den, Granite counter tops, also hand hammered copper counter top on the kitchen bar, 6 burner Kitchen Aid range with a grill, 2 dishwashers, all appliances are Kitchen Aid, home has 8 covered horse pens, riding area, insulated shop, tack barn, RV pad with hook ups, and much more, come view this property.

9825 E Sharon Drive Scottsdale, AZ 85260

$2,199,000
6 Beds
4.5 Baths
5,555 SqFt
Status Active
MLS # 6726874
Property Type Single Family Residence
Price Type --
Located on a cul-de-sac lot in a gated collection of newer luxury homes in the heart of North Scottsdale, this 6 bedroom, 4.5 bathroom basement home features 14 foot ceilings, energy-efficient 2x6 construction, oversize garages with huge storage cabinets. Owner suite is 75 feet long and over 1,000 square feet, with huge closet, office/sitting room, and fireplace. Basement wet bar and booming Dolby Atmos 4K home theater with huge custom sectional. Private guest suite with walk-in closet and full bath. Heated pool, hot tub, waterfall, misters, gas grill, and in-ground trampoline. Dog door with 50-foot dog run. Large front courtyard with fireplace. Available fully furnished and decorated, with all housewares, for a turnkey experience as a second home or short-term rental. Large Smart Home package included: Mesh Wi-Fi and wired Gigabit Fiber Internet, with App-controlled Thermostats, Pool, Garage Doors, LED Lights, and Fans. Home's exterior painted in June 2024, and entire home interior painted. Two new 5 Ton AC + Gas Furnace units in 2022. Neighborhood is adjacent to a park with lighted tennis, basketball, baseball, and sand volleyball. The elementary school (Redfield) ranks #4 out of over 1,300 Arizona K-8 schools.

8040 E Laurel Street Mesa, AZ 85207

$2,199,000
4 Beds
4.5 Baths
4,130 SqFt
Status Active
MLS # 6692475
Property Type Single Family Residence
Price Type --
Newly updated and meticulously manicured 1.3 acre private oasis in Mountain Bridge near top-ranked schools and Las Sendas! Come see this one of a kind, remarkable northeast Mesa gated resort property with a stunning (2024) remodeled interior and perfectly detailed desert-scape acreage with collector cacti and succulents! The spectacular backyard includes nearly 1100 sq.ft. heated (with gas and heat pump) pool and spa, swim-up bar, waterslide, grotto and water-fire features. This incredible backyard also includes professional grade putting and chipping greens, sunken pergola, outdoor kitchen, and impressive LED landscape lighting. There's room for a sport court and RV garage! Inside, you'll be impressed with the newly completed (2024) remodel. The home has a spacious master suite with three additional en-suite bedrooms perfect for hosting or privacy for your own family! The open concept and large chef's kitchen make this an entertainer's dream. An additional highlight is the flex space (featured with four over-sized swivel chairs) inviting the perfect retreat inside the home to watch Arizona's captivating sunsets. This home is part of the Mountain Bridge community, hosting incredible amenities, activities, clubhouse, and grounds. Included with such is an impressive Pickleball community with daily drop-in play, ladies ladder play, live ball, tournaments, and reservable courts for private play. The pickleball community is welcoming and friendly. The clubhouse also includes fitness center with classes, heated pool for lap swimming, water aerobics, and family play. Two spas, tennis, basketball, putting and chipping, greens, playgrounds, and miles of walking paths are also included within the HOA amenities. The community hosts, food trucks, live music, and weekly activities. There's much to see and experience in this northeast Mesa location with easy access to the 202 as well as hiking, fishing, mountain biking, golf courses, Gene Autry tennis and pickleball center, and more! A must see!

7120 N Clearwater Parkway Paradise Valley, AZ 85253

$2,199,000
3 Beds
4.5 Baths
3,204 SqFt
Status Active
MLS # 6617694
Property Type Single Family Residence
Price Type --
Rare offering in coveted Clearwater Hills! Find an unexpected pocket of natural beauty and safety in this mountainous guard-gated community. Clearwater Hills is a refuge from the traffic and sound of city life, where you are more likely to hear a coyote howl than a honking horn - yet it is just minutes from Arcadia and Biltmore restaurants, and less than 20 minutes from Sky Harbor. From the pool, look up at a ring of mountains. From the picture windows in the home, enjoy a view of distant city lights. This location is truly unique, and the home offers so many possibilities. This mid-century home offers 3 bedroom suites - a very spacious master with jetted tub and split shower, and two guest bedrooms with full bathrooms. (Continued in supplement...) Two powder rooms serve the main living areas. The master bedroom has a westward view of Piestewa, sitting area, dual closets, and opens to a balcony room enclosed by sliding doors. This flexible space is currently set up as a gym, but is just as easily used as a conservatory, a workspace or private lounge. This room overlooks a thriving natural wash area. The kitchen is updated with shaker cabinets, beautiful granite and newer appliances, including an induction cooktop and professional range hood. There is a seated peninsula and a kitchen table area. The formal dining area has a southward view which captures city lights at night; it is a dedicated space yet open to the large living area. From the front entry, you can look out on to two living spaces separated by back-to-back brick gas-burning fireplaces. The living areas are spacious with high ceilings and great natural light. The far side of the main living area a nice wet bar area for entertainment purposes, complete with beverage fridges. Large sliding glass doors open out on to a full-length covered veranda from every space along the back of the home, so you never lose view of your beautiful surroundings. Motorized roller shades offer privacy on the north facing windows at night. The powder room in the living area doubles as a pool bathroom as it opens onto the patio. The spacious pool deck is a step down from the home itself, offering privacy to swimmers while still feeling very open. A large pantry, laundry and utility room are right off of the kitchen, leading to the 2 -car garage. A large storage room runs along the back of the garage. The home has a newer roof as of 2019, and new flooring, stucco, & paint as of 2020. More recent upgrades include new HVAC units, new gas tankless water heater, plumbed gas to two fireplaces with remote fire controls, upgraded dishwasher, & new pool pump. While the character and quality of this home are lovely as-is, it would also be a great candidate for expansion or remodel. Buildable lots in the community garner high pricing and and a square footage addition or even a scrape and rebuild would be profitable in this location for a buyer with the right resources. 2nd story views from this location are easy to imagine by standing in the driveway looking out over the home - incredible!

9413 E Desert Village Drive Scottsdale, AZ 85255

$2,199,000
4 Beds
4.5 Baths
3,980 SqFt
Status Active
MLS # 6715278
Property Type Single Family Residence
Price Type --
Luxury residence offering gorgeous curb appeal in Sera Brisa is a dream come true! Exquisite interior showcasing neutral tile floor, soothing palette, charming arched doorways, two fireplaces, & dazzling custom light fixtures. Top of the line chef's kitchen is a cook's delight with cabinets galore adorned with crown moulding, Quartz and granite counters, huge island, SS Subzero fridge, separate Subzero fridge beverage drawers and dishwasher, Dacor dual ovens, microwave and gas stove, commercial disposal, 2 wine fridges new in 2023, Grohe faucet and much more. Highly desired floor plan with kitchen open to family room and dining w/beautiful wood beams. This home defines Smart Home technology from the cameras, thermostats, garage door openers, electric car charging outlet to the (contd) Toto remote toilet/bidet system. The serene main suite enjoys private outdoor access, bathroom with dual vanities, walk-in closet and huge shower w/separate tub. Some of the many additional upgrades include 2 Trane xr16 4 ton 16 seer 2 stage HVAC system installed in 2023 w/ Ecobee smart thermostats w/ image and video doorbell. Full home water softener and purification system. Designer ceiling fans and custom LED lighting throughout. You'll find a beautiful backyard with a covered patio, power shade and awnings installed, built-in SS BBQ with searing module and a cabinet ad drawers, gas firepit, swimming pool with fountain, covered pergola and more. Immaculate garage with epoxy, Gorilla shelving and custom storage, wifi garage door openers and an electric car charger outlet installed. This upscale luxury hi tech home won't disappoint! All nestled in a gated subdivision in the middle of DC Ranch!

40740 N Longhorn Drive Scottsdale, AZ 85262

$2,195,900
4 Beds
3.5 Baths
4,523 SqFt
Status Active
MLS # 6753439
Property Type Single Family Residence
Price Type --
Like two homes in one! Sensational city light and mountain views expanding over 50 miles showcase this lovely home situated on 10+ private acres within the exclusive enclave of Carefree Ranch Homesteads adjacent to Desert Mountain. Owned Solar w/Tesla Charging Station for ultra low electric bills. You'll experience the ultimate privacy among neighbors with $5M+ homes on large 5+ acre sites. Though on 2 levels, the main level has no steps with Living Room, dining room, kitchen, primary bedroom, powder room and 4 car garage. The lower level includes a 2nd master suite, large game room or guest living room with wet bar and two additional bedrooms and bath. This arrangement is perfect for shared ownership. The pool & heated spa and built in BBQ enhance the... outdoor experience soaking in the forever views. Many of Scottsdale's finest golf courses and 10 minutes from grocery, shopping and dining.

1815 E Myrtle Avenue Phoenix, AZ 85020

$2,195,000
4 Beds
4.5 Baths
3,729 SqFt
Status Active Under Contract
MLS # 6730506
Property Type Single Family Residence
Price Type --
Blue Sky Homes are 50% MORE energy efficient than a standard new build and Energy Star / Indoor AirPlus Certified for cost savings and a significantly healthier home for you and your family! With an emphasis on state of the art design, energy-efficiency, integrated technology, we offer unparalleled indoor / outdoor spaces welcoming year round quality time with friends and family .... All in the heart of Phoenix Arizona. This brand new BSH is surrounded by 360 degree of city light and mountain views and presents a near perfect floor plan featuring 3729 sq ft of the most thoughtfully crafted, 'smart green' finish details one could wish for in a home. Just moments from world class dining, shopping, hiking / biking trails and Sky Harbor Airport

5857 E Onyx Avenue Paradise Valley, AZ 85253

$2,195,000 - 3Br/3Ba -  for Sale in Country Estates Unit 2-b, Paradise Valley
New
$2,195,000
3 Beds
3 Baths
3,039 SqFt
Status Active
MLS # 6759959
Property Type Single Family Residence
Price Type --
This PV property has it all! The 3 C's schools make this neighborhood a parent's champion. Imagine the holidays, swimming parties, and fun everyone will have at your house! The chef's kitchen & resort backyard to make your new place something special. The flora is to die for; the current owners have pampered every plant, shrub, and tree to their delightful, eye-catching state. The interior of this home will make the stress of a busy workday fade away. Enjoy mountain views, sunsets, and peaceful living in your new Paradise Valley get-a-way. You'll have easy access to major freeways. You will be near all the good stuff: restaurants, entertainment, hiking trails, and fantastic shopping. Sky Harbor Airport is only a 20-minute drive when it's time to catch a flight for work or pleasure.

7127 E Rancho Vista Drive Unit 6011 Scottsdale, AZ 85251

$2,195,000 - 3Br/3Ba -  for Sale in Optima Camelview Village, Scottsdale
New
$2,195,000
3 Beds
2.5 Baths
2,406 SqFt
Status Active
MLS # 6759582
Property Type Apartment
Price Type --
EXCEPTIONAL, HIGHLY UPGRADED 2,406 SQFT 6TH FLOOR CONDO WITH TWO LARGE BEAUTIFULLY LANDSCAPED BALCONIES, AND GORGEOUS VIEWS! This exceptional 3 bedroom 2.5 bathroom condo features extensive floor-to-celing glass, a spectacular and highly upgraded gourmet kitchen, a well conceived open floor plan, superior finishes, 2 beautiful and quiet balconies, gorgeous views, 2 designated parking spots, and an attractive and upgraded laundry room. All found within the luxurious Optima Camelview Village, with it's unbeatable location & state of the art architecture/amenities. Amenities include: Two Outdoor Zen Pools, Spas & Bbqs One on each side of the community (heated year round). 24,000 sq. ft. Fitness Center (Recently Remodeled). Mens & Womens Locker Rooms w/ Steam Rooms, Showers and Private Lockers. Indoor Lap Pool & 2 Spas (Heated year round), On-site concierge, Putting green, Hybrid Basketball / Pickle-ball Court, Racquet ball court, On-site restaurant (metropolis), conference room, 24/7 Security, Reservable party room and multi-purpose fitness/yoga room.

26036 N Horseshoe Trail Scottsdale, AZ 85255

$2,195,000
5 Beds
4 Baths
3,680 SqFt
Status Active Under Contract
MLS # 6739213
Property Type Single Family Residence
Price Type --
Sleek & modern luxury Scottsdale estate! Step into the bright, open floor plan showcasing wood-look tile flooring in the common areas, gorgeous real hardwood in all bedrooms, custom lighting & fixtures throughout, & a stylish butler's pantry with wet bar. The gourmet kitchen is equipped with quartz countertops, top-tier Sub-Zero & Wolf appliances, reverse osmosis, & a massive island with extra storage & a 2nd prep sink. The split floor plan ensures privacy, while the spacious primary suite offers a separate exit & an ensuite with floating dual vanities, free standing tub, & an impressive walk-in shower with carrara mosaic tile landing area. Enjoy Arizona living in your backyard oasis, complete with a sparkling Pebble Tec pool, extended covered patio, turf, & a cozy outdoor stone fireplace. Additional features include a 3-car garage with an electric car 220v outlet & MyQ app operated garage door, a water softener, & tankless hot water heater. Located in North Scottsdale, this home provides quick access to hiking/biking paths, various golf clubs, DC Ranch, & so much more. Don't miss your opportunity to experience luxury living in this prime location!

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