What’s Ahead For Mortgage Rates This Week – September 19, 2016

Last week’s economic news included reports on retail sales, inflation, and weekly reports on mortgage rates and new jobless claims.

Retail Sales Slip as Consumer Prices Inch Up

Retail sales dipped into negative territory in August with a reading of -0.30 percent as compared to expectations of -0.10 percent and July’s reading of +0.10 percent. Retail sales excluding auto sales were better at +0.30 percent. Analysts expected a reading of +0.20 percent based on July’s reading of -0.40 percent. August’s negative reading for retail sales was the first negative report since March.

Inflation fared better than retail sales with August’s Consumer Price Index reading at 0.20 percent. Analysts expected a reading of 0.10 percent; July’s reading was flat. Core Consumer Price Index readings for August are less volatile, as the Core CPI does not include readings for food and energy costs. August’s Core CPI reading was 0.30 percent. A reading of 0.20 percent was expected; July’s reading was 0.10 percent. It appears that inflation is creeping upward, but remains well below the Fed’s target reading of 2.0 percent.

Mortgage Rates, New Jobless Claims Rise

Freddie Mac reported higher mortgage rates across the board last week. The average rate for a 30-year fixed rate mortgage rose six basis points to 3.50 percent; the average rate for a 15-year fixed rate mortgage rose one basis point to 2.76 percent and the average rate for a 5/1 adjustable rate mortgage rose one basis point to an average of 2.82 percent. Average discount points were 0.50 for 30 and 15-year fixed rate mortgages and 0.40 percent for 5/1 adjustable rate mortgages.

Low mortgage rates have helped home buyers, especially first-time and moderate income buyers, meet affordability challenges. Home prices have risen due to low numbers of available homes and high demand for homes. If mortgage rates continue to rise, fewer buyers will be able to qualify for mortgages and or afford asking prices for available homes.

Next week’s meeting of the Fed’s Federal Open Market Committee is expected to bring news of a Fed decision on raising the target federal funds rate. If the Fed raises its rate, consumer interest rates for mortgages, vehicles and other goods can be expected to increase as well.

Whats Ahead

This week’s economic news includes the NAHB Housing Market Index, Commerce Department reports on housing starts and building permits issued and a Fed Statement at the conclusion of its Federal Open Market Committee meeting on Wednesday. Fed Chair Janet Yellen is also slated to give a press conference after the FOMC statement. The National Association of Realtors will also release a report on sales of previously owned homes.

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38500 N School House Road Unit 5 Cave Creek, AZ 85331

$875,000 - 3Br/3Ba -  for Sale in Galloway Ridge, Cave Creek
Open House
$875,000
3 Beds
3 Baths
2,113 SqFt
Status Active
MLS # 6752405
Property Type Single Family Residence
Price Type --
Experience resort-style living in the heart of Cave Creek with this stunning 3-bedroom, 3-bathroom home. Perfectly situated within walking distance to the vibrant town center, you'll have easy access to a variety of restaurants, shopping, and entertainment options. This home features an open floor plan with soaring ceilings, granite countertops, tile and carpet flooring, and new appliances. Enjoy the outdoors on your patio with a fireplace, just steps from the community pool. The community is rich with amenities, including a heated pool and spa, BBQ pavilion, fire pit, pickleball court, fitness center, and a dog park. This move-in ready home offers the perfect blend of luxury, convenience, and scenic beauty, making it an ideal retreat in one of Cave Creek's most sought-after locations.

5345 E Mclellan Road Unit 118 Mesa, AZ 85205

$875,000 - 3Br/3Ba -  for Sale in Alta Mesa Estates 1, Mesa
Open House
$875,000
3 Beds
3 Baths
2,702 SqFt
Status Active
MLS # 6755884
Property Type Single Family Residence
Price Type --
Stunning Home for Sale in Gated Golf Course Community - Alta Mesa Estates Welcome to this exquisite home in the highly sought-after gated golf course community of Alta Mesa Estates. This luxury property boasts impeccable craftsmanship and high-end finishes throughout. As you step inside, you'll be greeted by an inviting foyer with graceful archways and a living room featuring elegant crown molding. Enjoy formal dining and a versatile den/office with a private courtyard, perfect for work or relaxation. The chef's kitchen is a true showstopper with custom cabinetry, crown molding, a glass tile backsplash, a large prep island with a breakfast bar, granite countertops, stainless steel appliances, and double ovens. A cozy breakfast nook with bay windows completes this beautiful space. Throughout the main living areas, you'll find wood-look porcelain tile flooring, adding both style and durability. Upstairs, a cozy loft offers a perfect spot for a reading nook, while the grand primary suite features balcony access, a walk-in closet, and a luxurious ensuite bathroom. The backyard oasis is ideal for entertaining, with a covered patio, multiple seating areas, and a saltwater pool with water features, creating a private resort-like atmosphere. Key Features: Located in NE Mesa with easy access to the 202 and US 60 Minutes from downtown Phoenix, Scottsdale, and Gilbert Close to Tonto National Forest (10-15 minute drive) Newer HVAC units and pool heater Fiberglass exterior windows and solid core exterior doors New ceramic tile in all three bathrooms Beadboard ceilings in the front entry and covered back porch Many more upgraded features throughout This home is perfect for entertaining, relaxing, and enjoying the Arizona lifestyle. Don't miss this exceptional opportunity!

15522 E Cactus Drive Fountain Hills, AZ 85268

$875,000 - 3Br/3Ba -  for Sale in Sunridge Canyon Parcel G South, Fountain Hills
Open House
$875,000
3 Beds
2.5 Baths
2,524 SqFt
Status Active
MLS # 6757106
Property Type Single Family Residence
Price Type --
Nestled at the end of a quiet cul-de-sac in the highly sought-after Sunridge Canyon neighborhood, this stunning single-story home offers 2,524 sq. ft. of well-designed living space. Step outside to your private resort-style backyard, complete with a heated pool, spa and water feature. The home features two split master suites, each with large walk-in closets and ample storage. The inviting living area boasts a striking floor-to-ceiling tiled fireplace and expansive windows with plantation shutters. The gourmet kitchen is a chef's dream, a spacious granite island and roll-out cabinetry. Don't miss this incredible opportunity!

3902 W Ruby Way San Tan Valley, AZ 85144

$875,000 - 4Br/4Ba -  for Sale in The Preserve San Tan - Unit 2b, San Tan Valley
Open House
New
$875,000
4 Beds
3.5 Baths
2,900 SqFt
Status Active
MLS # 6762536
Property Type Single Family Residence
Price Type --
Step into model-quality elegance and come see this stunning SINGLE LEVEL home in Queen Creek, AZ! This immaculate property is just over a year old and boasts 4 bedrooms, 3.5 bathrooms, and a 4-car garage. Situated on a corner lot bordering green space, this home offers the perfect blend of privacy and access to nature, with nearby hiking trails and shopping just minutes away. Inside, you'll find ceiling-height cabinetry, quartz countertops throughout, and no carpet, providing a sleek, modern look with upgraded lighting and smooth-finish drywall. The open-concept kitchen is a chef's dream with its spacious layout and modern finishes, perfect for entertaining. The large flex space offers versatility for a home office, gym, or media room. The outdoor space is an entertainer's paradise, featuring a brand new pool, outdoor kitchen, fire pit, and low-maintenance turf. Whether you're relaxing by the fire or hosting a summer barbecue, this backyard has it all. Move-in ready, this home is your opportunity to enjoy Arizona living at its finest. Don't miss out on this incredible homeschedule your showing today!

4347 S Carbon -- Mesa, AZ 85212

$875,000 - 5Br/3Ba -  for Sale in Eastmark Du 3/4 North Phase 2 And 3, Mesa
Open House
$875,000
5 Beds
3 Baths
3,018 SqFt
Status Active
MLS # 6741194
Property Type Single Family Residence
Price Type --
This stunning two-story home, located on a desirable corner lot across from a park area, offers ample space and luxurious features throughout. With 5 bedrooms, 3 bathrooms, a den, and a loft, this home is designed to meet all your needs. The impressive curb appeal is highlighted by brick accents and a spacious 4-car garage, featuring a tandem setup with a pull-through option and a soft water loop. Inside, the home boasts tile flooring, 6-panel doors, 5-inch baseboards, and two-toned paint, creating an elegant and cohesive aesthetic. The large slider in the main living area allows for seamless indoor-outdoor living. (CLICK TO READ MORE) The gourmet kitchen is a chef's dream, featuring quartz countertops, white shaker staggered cabinets, a wall oven, a built-in microwave, a single basin sink, and upgraded pendant lighting. The kitchen opens up to the dining and living spaces, perfect for entertaining. The primary suite is a true retreat, offering direct access to the backyard, a massive walk-in closet, and a private bathroom with a separate tub and shower, dual sinks, white shaker cabinets, and a private toilet room. The laundry room is equipped with upper white shaker cabinets and a utility sink for added convenience. The backyard is designed for relaxation and enjoyment, featuring an extended patio slab, artificial turf, and low-maintenance landscaping. Just like a world-class resort, this community offers a luxurious community pool, splash pads, numerous parks spread throughout, the Steadfast Farm, and its very own state-of-the-art clubhouse The Mark. The Mark hosts events throughout the year and provides a wide variety of family-friendly games to play. Don't miss the chance to experience luxury living at its finest and make this exceptional home yours!

19870 E Strawberry Drive Queen Creek, AZ 85142

$875,000 - 4Br/3Ba -  for Sale in Cielo Noche, Queen Creek
Open House
$875,000
4 Beds
2.5 Baths
3,250 SqFt
Status Active
MLS # 6754998
Property Type Single Family Residence
Price Type --
Don't be fooled by days on market! This home is back on the market due to previous sale falling through. Seize the chance to own this stunning single-level home in the sought after gated community of Cielo Noche! Located right on the border of Queen Creek and Gilbert, this residence offers the perfect blend of tranquility and convenience, just five minutes from multiple premier shopping centers. Step inside to discover luxurious upgrades throughout, a breathtaking kitchen, multiple inviting living areas, a versatile flex space that can serve as an office or be transferred into a fifth bedroom, and a spacious 3 car garage with built in storage. The experience extends outdoors to your expansive covered patio, overlooking a meticulously landscaped yard that will make you never want to leave.

5655 E Saint John Road Scottsdale, AZ 85254

$874,999
4 Beds
2 Baths
1,941 SqFt
Status Active
MLS # 6716133
Property Type Single Family Residence
Price Type --
Discover your dream home in the heart of North Scottsdale! This elegant and modern 4-bedroom, 2-bathroom home features a sparkling pebble-tec pool with a travertine deck and is only minutes away from all that Kierland and Scottsdale quarter has to offer including a variety of fine dining options, luxurious shopping experiences and 5-star spas! Nestled near multiple world class golf courses including the TPC Scottsdale, home of the Waste Management Open, enjoy life in the middle of all that Scottsdale has to offer! Beautifully tiled throughout, this light and airy home features neutral and modern paint colors, stainless steel appliances, a pool table, dining area, and a covered patio. This home has been a successful AirBnB and can be purchased fully furnished at no extra cost! Experience the epitome of upscale living and come see this home today!

1018 E Tuckey Lane Phoenix, AZ 85014

$874,999
3 Beds
2 Baths
2,196 SqFt
Status Active Under Contract
MLS # 6729434
Property Type Single Family Residence
Price Type --
WOW! Welcome to your North Central dream home! This thoughtfully designed, remodeled, and move in ready home is waiting for you. Taken down to the studs with a massive addition in 2015, no detail was missed on this ranch beauty. Featuring multiple living spaces, a large and open kitchen area, this home is an entertainers dream. The kitchen comes equipped with stainless steel appliances, including a gas range/oven, and tons of cabinets for storage. You will also love the custom built live edge island countertop, bar shelf, and the mantle above the gas fireplace. The primary suite features wall to wall cabinets that holds a TV as well as additional storage. Double sinks in the bathroom with tons of vanity space, a soaking tub, and a walk in shower highlight the primary bathroom.

10737 E Simone Avenue Mesa, AZ 85212

$874,999 - 4Br/3Ba -  for Sale in Eastmark Development Unit 7 North Parcels 7-6 Thru, Mesa
Open House
$874,999
4 Beds
3 Baths
2,800 SqFt
Status Active
MLS # 6759842
Property Type Single Family Residence
Price Type --
Gorgeous 4-bedroom, 3-bathroom home, complete with a spacious den and an open floor plan designed for seamless living and entertaining. The split-bedroom layout ensures privacy, while two sliding glass walls open up to the backyard, offering a true indoor-outdoor experience. Step outside to your personal oasis, where you'll find a newly installed pool, travertine hardscape, and a covered patio. The backyard is also equipped with a movie screen and hot tub, creating the ultimate space for outdoor entertaining. Luxury vinyl plank flooring flows throughout the home & custom shutters. Guest Bedroom 2 features a private full bathroom. Additional highlights include a spacious 3-car garage. Own a home that blends luxury and comfort, inside and out!

29224 N 146th Street Scottsdale, AZ 85262

$874,990
4 Beds
2 Baths
2,389 SqFt
Status Active
MLS # 6730322
Property Type Single Family Residence
Price Type --
PRIDE OF OWNERSHIP! Immaculate & peaceful North Scottsdale horse property w/ tons of natural light on 1.25 acres w/ pool & incredible mountain views. This nearly 2400 sq ft home features an open floor plan w/ 4 bedrooms, 2 upgraded baths, plantation shutters throughout, stone gas fireplace, gourmet kitchen w/ granite countertops, stainless steel appliances & kitchen island, large master bedroom w/ beautifully upgraded master bath including tiled shower, soaking tub & dual vanities, highly upgraded second bath w/ tile shower and tub & large secondary bedroom w/ dual closets. Exterior features include large garage with plenty of storage, covered front patio and extended covered back patio, pool with incredible views and horse set up including riding arena and stalls.

4055 Miners Spring Way Wickenburg, AZ 85390

$874,900
3 Beds
2.5 Baths
2,365 SqFt
Status Active
MLS # 6753327
Property Type Single Family Residence
Price Type --
Experience desert living at its finest in this exquisite 3-bedroom, 2.5-bath home with a 3-car garage, nestled in the serene oasis of Wickenburg. The stunning curb appeal is enhanced by brand new landscaping, welcoming you into a home that is a true canvas for your dreams. Situated on a spacious 1/2 acre lot, there's ample room to add an RV garage, pool, or even a casita. The outdoor kitchen is perfect for entertaining as you enjoy breathtaking sunsets and mountain views. Inside, the kitchen is a chef's delight with satin-finished granite countertops, soft-close cabinets and drawers, a gourmet cooktop, and a chimney hood. Additional features include an owned security system and a water softening system. As a resident of Wickenburg Ranch, you'll also enjoy access to a wide range of resort- style amenities including clubhouse, 2 golf courses, 3 restaurants, 14 miles of paths and trails, fishing, salon and classrooms. Property backs to land preserve owned by Wickenburg Ranch. Don't miss out on this incredible opportunity!

1120 Sunrise Boulevard Prescott, AZ 86301

$874,900
3 Beds
3 Baths
2,247 SqFt
Status Active
MLS # 6740079
Property Type Single Family Residence
Price Type --
This stunning new construction home, situated in the highly desirable Yavapai Hills, boasts outstanding curb appeal. For all the amazing details about this home, you'll want to watch the builder video under the photos. Upon entry, the open, great room split bedroom design concept immediately impresses. The great room features a gas fireplace and floods the space with natural light from the 12-ft sliding glass door. The kitchen is a chef's dream, featuring a six-burner gas cooktop, a beautiful tile backsplash that extends from the counters to the base of the cabinets and an elegant island with pendant lighting and quartz counters serving as the centerpiece & providing a contrasting accent to the flanking countertops. The cabinetry includes soft-close doors/drawers & dovetail construction. The massive walk-in pantry includes a dedicated circuit for an additional fridge or freezer. The master suite offers dedicated access to the rear covered patio, with ceiling fans installed in all bedrooms and the great room. The spa-like master bathroom includes an elegant tile backsplash from the vanities to the ceiling, floating vanities with indirect LED lighting, a double vanity, and a 42-inch tall massive walk-in shower with floor-to-ceiling tile. The guest bathroom is a full bath with a floating vanity, quartz counter, and indirect kick lighting and is flanked by the two spacious guest bedrooms. The home includes an ERV unit for fresh air circulation, 100% spray foam insulation, and wood plank tile floors throughout except for the three bedrooms. Custom modular closet systems provide additional storage solutions. Solid core doors and custom closet systems enhance functionality throughout the house. The 3.5-car garage is fully insulated in the ceiling and exterior walls, insulated overhead doors, WiFi-enabled openers and electric car charging plug. A tankless hot water heater with a recirculating pump is installed, and there's a convenient garage door leading to the backyard. The property provides a natural buffer with dedicated open space behind the house, enhancing privacy and views. Additional highlights include a HERS rating of 42, Milgard windows, gutters, downspouts, enclosed eaves, full synthetic stucco, a post-tension slab, an electric vehicle plug in the garage, and expansive paver patios with stack stone columns. The home is enveloped in full synthetic low-maintenance stucco and includes elegant paver driveways, walkways, and patios. The front and rear landscaping are fully completed, a rare find for new construction and offers excellent long-distance views of Glassford Hill and the Mingus Mountain Range. The newly finished home is ready to make it your own.

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