What’s Ahead For Mortgage Rates This Week – September 26, 2016

Last week’s economic news was abundant with releases on home builder sentiment, housing starts, building permits, sales of previously owned homes. The Federal Open Market Committee of the Federal Reserve released its customary statement at the conclusion of its meeting; Fed Chair Janet Yellen also gave a press conference. Weekly readings on new jobless claims and mortgage rates were released as usual.

NAHB: Builder Sentiment Increases in September

Home builder confidence in housing market conditions increased in September according to the National Association of Home Builders Housing Market Index. Builder confidence rose five points to 65; analysts expected a reading of 60 based on August’s reading of 59. NAHB said that September’s reading was boosted by more “serious” buyers entering housing markets.

Components used to determine NAHB HMI readings were also higher. Builder confidence in current market conditions rose six points to 71; builder confidence in housing market conditions over the next six months rose by five points to 71. Builder confidence in buyer traffic in new housing developments rose four points to 48. Buyer traffic readings have not reached 50 since 2005; 50 is a neutral benchmark for NAHB HMI readings.

Home prices continue rising at a higher pace than wages; this is pressuring first-time and moderate income buyers out of the market. An ongoing shortage of available homes is pressing prices higher as demand increases. Analysts pay close attention to the NAHB HMI as building more new homes is a key factor in easing the shortage of homes for sale.

Housing Starts, Building Permits Lower

Commerce Department readings on housing starts and permits issued were lower for August Housing starts were lower in August at 1.142 million starts on a seasonally-adjusted annual pace. Analysts expected 1.182 million housing starts based on July’s reading of 1.212 million starts. Regional readings showed a dip in starts in the South. Severe flooding in Louisiana contributed to the lower reading for housing starts. August’s reading for housing starts was 5.80 percent lower than July’s reading and 0.90 percent lower than for July 2015.

Building permits issued were nearly flat in August; this was likely due to the prime building season winding down 1.139 million permits were issued as compared to 1.144 million permits issued in July. Single-family starts were six percent lower than for July and were 1.20 percent lower year-over-year.

Existing Home Sales Dip: High Demand, Low Supply Cited

Sales of pre-owned homes fell by 0.90 percent in August to a seasonally-adjusted annual rate of 5.33 million sales. Analysts expected a reading of 5.48 million sales; July’s reading for sales of pre-owned homes was 5.38 million sales.

Low inventory of available homes continues to impact housing markets as demand for homes increased and prices rose; the national average home price was $240,000 in August. Rising home prices continued to be driven by high demand and low supplies. These conditions also impacted first-time and moderate income home buyers who were pressured to keep up with rapidly rising home prices.

While mortgage rates remain relatively low, higher home prices and tight mortgage credit requirements remain obstacles for first-time buyers.

Mortgage Rates, Weekly Jobless Claims Lower

Freddie Mac reported lower mortgage rates last week. The average rate for a 30-year fixed rate mortgage fell by two basis points to 3.48 percent; the average rate for a15-year fixed rate mortgage fell on one basis point to 2.76 percent. The average rate for a 5/1 adjustable rate mortgage was lower by two basis points at 2.80 percent.

Analysts expected new jobless claims to remain flat at the prior week’s reading of 260,000 new claims, but 252,000 new claims were filed for the lowest reading since July. The four-week rolling average of new jobless claims fell by 22250 claims to 258,500. The four-week reading is considered a less volatile reading than week-to-week readings.

Federal Reserve: No Increase in Fed Rate

The Federal Open Market Committee said in its post-meeting statement that the target federal funds rate would not be raised. In a press conference given after the FOMC statement, Fed Chair Janet Yellen said that although the economy continued to improve, the Fed had concerns over the labor market and decided not to raise rates. Any increase in Federal Reserve rates triggers increases in consumer lending rates.

What’s Ahead

This week’s readings include Case-Shiller Home Price Indices, readings on new and pending home sales and weekly readings on mortgage rates and new jobless claims.

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5250 E Deer Valley Drive Unit 348 Phoenix, AZ 85054

$1,237,899
2 Beds
2.5 Baths
1,781 SqFt
Status Active
MLS # 6783918
Property Type Apartment
Price Type --
''The Luxe at Desert Ridge'' NEW BUILD MODEL'' elegant modern luxury living. The Luxe offers resort style living at its finest. Spacious condo w/ beautiful interior upgrades, beautiful lighting, quartz countertops, tile floors main throughout, beautiful surround tile showers & bathroom floor, Upper & lower kitchen cabinets w/ lighting, laundry room with W/D and sink, oversized patio w/ built-in gas BBQ, underground gated parking w/ two stalls & large storage room, elevators from parking to all levels. Onsite amenities, beautiful Clubhouse with chef's kitchen, theatre room, private conference center, dining room for private dinner parties, lap pool/resort style pools, large fitness w/ top of line equipment, infra-red sauna, locker rooms & yoga studio.

14655 N 15th Avenue Phoenix, AZ 85023

$1,235,000
3 Beds
3.5 Baths
3,718 SqFt
Status Active Under Contract
MLS # 6738503
Property Type Single Family Residence
Price Type --
Assumable VA loan at 2.34% available (not just for vets)!! Welcome to your dreamy 3 bed, 3.5 bath hillside home nestled in the center of the prestigious 24/7 guard-gated community of Coral Gables Estates, with easy access to anywhere in the Valley! A custom 10-foot door welcomes you into a grand foyer and a stylish living and dining room. At the heart of the home is the expansive kitchen offering a Subzero refrigerator, warming drawer, custom built wine closet, & 8-foot island; perfect for entertaining! Open to the kitchen is the impressive family room with soaring ceilings & cozy fireplace. Relax in the spacious primary bedroom with sitting area & fireplace and a spa-style bathroom, including a heated tub with jets and a warming drawer for towels-so nice in the Winter! Split from the primary are 2 spacious bedrooms, each with ensuite bathrooms and walk in closets. Relax, entertain & enjoy Arizona outdoor living in the resort-style backyard that backs to the mountain with ever-changing natural landscape. Dine on the covered patio, play on the grass lawn (turf), kick back around the built in firepit with surround seating, or take a dip in the saltwater diving pool. You won't want to leave! The home also offers ample parking and loads of storage in the air-conditioned 3-car garage. Average monthly electric bill is only $119 due to Pearl Certification & energy efficient rated home (see the attached certification and appraisal report)!

2538 N 91st Place Mesa, AZ 85207

$1,235,000
4 Beds
3 Baths
2,983 SqFt
Status Active
MLS # 6745151
Property Type Single Family Residence
Price Type --
BUYER FAILED TO PERFORM! Welcome to this exquisite custom home built on a county island so it is secured and quiet but close to all modern conveniences. This 4 bedroom, 3 bath home with a 3 car garage will be sure to impress and is move-in ready. Excellent curb appeal and well manicured lawn welcome you home. Enter the iron and glass front door to a massive great room with vaulted ceilings with wood beams that also overlooks the thoughtfully designed back yard and mountain views. Luxury vinyl plank flooring throughout the entire home makes it great for keeping it clean and sanitary. Enjoy a large generational suite or home office with living area, kitchenette and bedroom attached to a full bath. It feels like its own studio apartment. The split floor plan offers privacy for the master retreat. The master is very generous in size and offers a luxurious spa-like bathroom with a large freestanding soaker tub with amazing mountain views right out your bathroom. Adding dual vanities, upgraded tile shower and 2 walk-in closets with custom built-ins are exactly what you would expect in a home of this caliber. Outside is a fully landscaped, eco-friendly backyard, with drips for plants and synthetic grass. Entertain for all of your upcoming bbq's and events with the large patio, built-in pergola, upgraded swimming spa, extensive paver patio and walking paths, fenced yard with RV gates to pull through, RV hook-ups and so much more. The over-sized 3 car garage and large drive with RV gates are also a nice addition. This beautiful custom home is move-in ready so do not miss your opportunity to call this home!

1417 E Cherrywood Place Chandler, AZ 85249

$1,230,745
4 Beds
3 Baths
2,828 SqFt
Status Active
MLS # 6782176
Property Type Single Family Residence
Price Type --
Furnished single-story model home in the gated community of Treeland. The home offers a Southwest exterior featuring 4 bedrooms, 3 bathrooms, a den, game room and attached 3-car garage. The kitchen features stainless steel built-in GE Monogram appliances including a 36'' gas cooktop and quartz countertops with a waterfall edge at the island. Other highlights include a 12' multi-slider at the great room, Sonoma painted black cabinets with stacked uppers, coffered ceiling in the foyer and primary suite, frameless walk-in shower at the primary bath, 6'' X 36'' wood look floor tile, extended dining room and covered patio, washer, dryer and 42'' GE Monogram refrigerator. Purchase now with delayed close of escrow targeted for the end of April, 2025, or earlier at Seller's discretion w/notice.

16229 E Blue Sky Drive Scottsdale, AZ 85262

$1,230,000
4 Beds
3.5 Baths
3,042 SqFt
Status Active
MLS # 6759183
Property Type Single Family Residence
Price Type --
Amazing custom home with horse privileges nestled in the breath taking mountain setting of North Scottsdale. This wide open floor plan is complete with huge fireplace, custom cabinetry in the great room and custom roller shades on every window. The kitchen is every chefs dream with built in stainless steel appliances, huge walk in pantry w/ prep area, giant waterfall- style kitchen island w/ quartz counters, real wood cabinetry and custom stone backsplash. You will find luxury hardwood and tile throughout the home. Enter the master retreat to find the amazing super shower, pedestal soaking tub, his & hers sinks and huge walk in closet. Oversized garage with custom built in cabinets. This acre lot has plenty of room for your pool, horse facility, shop and so much more.

8411 E Windrunner Drive Scottsdale, AZ 85255

$1,230,000
3 Beds
3 Baths
2,552 SqFt
Status Active
MLS # 6773652
Property Type Single Family Residence
Price Type --
Welcome to this gorgeous Monterey home in Grayhawk's Talon Retreat, just steps away from the community heated Pool and Spa! This home has been extensively remodeled with almost $300,000 in upgrades and Improvements in the last 4 years, including resurfaced roof in 2023 and TWO completely replaced HVAC systems in 2024! The Retreat is a 24-hour guard gated neighborhood that is the epitome of luxury living in one of Scottsdale's premier Golf Communities. This home is absolutely turnkey, and it's perfect as a primary residence or as a winter retreat. The low maintenance backyard provides unparalleled privacy and peacefulness. When you enter this home, you are immediately greeted with lovely French oak wide plank flooring which runs through the main home and bedrooms. This large open room concept floor plan and 12 ft ceilings, maximizes the 2500 square feet, and the wall of glass and natural light, brings the outdoors inside! The kitchen has been completely remodeled with a large entertainer kitchen island, quartz countertops, Wolf and Sub-Zero appliances and a fabulous bay window breakfast nook. Did I mention how much natural light is in this home? You will be blown away by the outdoor / indoor living in this one of a kind property. The primary suite has been remodeled as well with a huge double vanity, top of the line fixtures, tile flooring, giant vanity mirror, and a floor to ceiling tile and glass shower. Open the barn door to find a large walk-in closet that has tons of organized space, and there are additional linen cabinets to meet all of your storage needs. The Primary bedroom has a slider door which has access to the backyard retreat. The front bedroom is another Primary bedroom with its own en-suite bathroom and walk- in closet. There is a large office or den space with fantastic built-in shelves and desk. This space could easily be enclosed to make a formal bedroom, because there is a third full bath right around the corner. The oversized laundry room has tons of cabinets, Quartz countertops, full size front load LG washer and dryer and a new mud sink and cabinet, and leads out to the two car garage with custom cabinets, a water filtration system, and a newer oversized water heater with recirculation pump. This property is truly one of a kind and has been lovingly cared for over the last 4 years.

7791 E Foxmore Lane Scottsdale, AZ 85258

$1,225,000
3 Beds
2.5 Baths
2,294 SqFt
Status Active
MLS # 6708894
Property Type Single Family Residence
Price Type --
Rare opportunity in the private gated Meridian community of Scottsdale's McCormick Ranch. Prime interior corner lot with N/S exposure- 1 block away from the heated community pool & spa. Every room has been meticulously redesigned/remodeled with only premium quality materials- including all new windows, custom cabinets, counters & kitchen island, 5-burner Italian stove, large format porcelain tile, new stairway, premium lighting, ceiling fans & fixtures, custom window coverings, closet built-ins, tankless water heater, water softener, R/O drinking water system, new interior & exterior paint & moldings, new garage epoxy, & more... The floorplan is perfectly designed for ground level living with large great room, primary suite, office & eat-in kitchen, vaulted ceilings, skylights plus 2 sets of sliding doors that open to a private backyard with large covered travertine-paved patio & low-maintenance turf. Loft space was enclosed adding a sitting area to 1 of 2 addt'l bedrooms plus full bath on the upper level. Don't miss this absolutely pristine home- perfectly located in one of the most coveted neighborhoods of Scottsdale.

2603 W Espartero Way Phoenix, AZ 85086

$1,225,000
3 Beds
3.5 Baths
3,518 SqFt
Status Active
MLS # 6765868
Property Type Single Family Residence
Price Type --
Just voted BEST ON TOUR! Nestled among multi-million dollar homes with breathtaking mountain & desert vistas. This expansive residence in the highly coveted gated community of Tramonto Estates awaits. Step through an elegant courtyard entry adorned with stunning desert flora. This airy, open home is incredibly welcoming and boasts ample room for entertaining. A formal dining area and a charming living room with a fireplace and a stunning view of the incredible resort yard greet you upon entry. The kitchen and family room are seamlessly connected, providing easy access to the vibrant resort yard featuring a covered patio, artificial turf, built-in BBQ, firepit, and a sparkling pool & spa. Guests will appreciate the two spacious guest rooms, each with its own private ensuite. The owner's suite is inviting with a fireplace, ensuite, and a study with a private entrance ideal for a home office. This home has been immaculately maintained with Owned Solar Panels included(ask for details), a Tesla/EV outlet and new pool heater. You also have access to all of Tramonto's wonderful amenities including 2 pools, spas, tennis courts, parks and sand volleyball.

15230 N San Diego Circle Fountain Hills, AZ 85268

$1,225,000
4 Beds
4 Baths
3,527 SqFt
Status Active
MLS # 6771982
Property Type Single Family Residence
Price Type --
Beautifully upgraded North Heights home featuring 4 bedrooms an office and 4 bathrooms. Enjoy a modern kitchen and stylish bathrooms, complemented by plantation shutters throughout. Backyard access is through three separate sets of French doors to a resort-style backyard oasis, showcasing natural rock formations and stunning views of McDowell Mountain and Red Rock. The expansive outdoor space features flagstone patios, faux grass, lush vegetation on a generous 1/3-acre lot, a gas fireplace, built-in BBQ with a refrigerator, and a Pebble-Tec pool and spa with a water feature. With exceptional curb appeal from a stone-faced fireplace and stylish wood-like garage doors, this residence is a must-see!

88 Chapel Road Sedona, AZ 86336

$1,225,000
4 Beds
4 Baths
3,038 SqFt
Status Active
MLS # 6769249
Property Type Single Family Residence
Price Type --
Introducing a rare opportunity in the sought-after Mystic Hills subdivision of Sedona. This custom 3 bedroom, 3 bath home, with an attached 1 bedroom, 1 bath Studio, offers endless possibilities for customization and personalization. Priced as the most affordable home in the neighborhood, this property has already seen some upgrades, leaving the rest for you to make your mark with your own finishes. The attached studio is a versatile space, perfect for extended guests, a home office, or a mother-in-law suite. With the potential to customize to your liking, this home offers the chance to create your own oasis in the heart of Sedona. The proximity to hiking trails and a mountain biking loop makes it ideal for outdoor enthusiasts, while the up close and unobstructed Red Rock views provide a stunning backdrop for daily living. Inside, the home boasts an open and bright layout with high ceilings, expansive windows, a gathering gas fireplace and a split floor plan for added privacy. The primary suite features two walk-in closets, a large master bathroom, and large windows overlooking the native forest. The recently remodeled kitchen offers ample counter space, new appliances, and hardwood Birch cabinets with soft close doors. Step outside onto the expansive deck to enjoy breathtaking majestic views of Elephant Rock, Cathedral Rock, Mother and Chile, the Nuns, Steamboat Rock, Mount Wilson, and The Chapel in the Red Rocks and more brilliant surrounding landscape. The partially covered deck provides the perfect space for relaxation or entertaining, while the attached Studio offers additional living space with its own bathroom, kitchenette and outdoor Jacuzzi. Residents of Mystic Hills enjoy access to a clubhouse with a swimming pool, spa, weight room, and kitchen, as well as regular community activities like tennis, pickleball, hiking and neighbor get togethers. With low HOA dues and a vibrant community atmosphere, experience the beauty and tranquility of Sedona living at its finest.

427 W Louis Way Tempe, AZ 85284

$1,225,000
5 Beds
3.5 Baths
3,674 SqFt
Status Active
MLS # 6769327
Property Type Single Family Residence
Price Type --
Absolutely STUNNING basement home in South Tempe's premier gated community! Five bedrooms PLUS a home theater! Situated on an interior cul-de-sac with an over 18000 sq. ft. lot! NEW ACs, NEW roof, NEW water heater! Four-car garage AND an RV gate with pad! Beautiful highly upgraded plush carpet and travertine tile! Gourmet island kitchen with granite counters, oversized cabinets, even two dishwashers! All bathrooms completely remodeled! There's even a bidet in the master bath! The basement features a theater room (screen & equipment stay), two bedrooms & a bathroom! Bdrm 5 has built-in dual-station desk and a Murphy bed! Huge, private backyard with 5 fruit trees, pond and waterfall! Look for the complete list of extras in the Docs section! Hurry to this one!

16580 N 92nd Street Unit 2001 Scottsdale, AZ 85260

$1,225,000
2 Beds
2.5 Baths
2,004 SqFt
Status Active
MLS # 6782882
Property Type Apartment
Price Type --
RARELY AVAILABLE in Soho Scottsdale 2 BR+Den Condo. FULLY FURNISHED, IMMEDIATELY AVAILABLE, MOUNTAIN VIEWS and UNDERGROUND PARKING. Amazing LOCATION... near Westworld, Ice Den and the 101. This like-new property has TWO EN-SUITE BEDROOMS, plus spacious DEN and powder room with a magnificent kitchen optimized for entertaining and efficiency with quartz counter tops, contemporary sleek custom cabinetry and GE Monogram Statement appliance suite. With over 2000 interior square feet, the living spaces live large with the soaring ceilings, spacious hallways and modern details found in properties significantly higher priced. Additionally, the condo has TWO PATIOS, rare for a property this size. The home is wired and outfitted for SMART PHONE CONTROL of entry door, lighting, and heating/A Included are two underground, gated parking spaces with semi-private elevator direct to your door. Whether you vacation in or make Arizona your primary residence, SoHo Scottsdale, offers you the lifestyle you have imagined. West World, the home of Barrett Jackson, the Arabian Horse Show along with many other events that make Scottsdale, Scottsdale are within walking distance. The world renowned TPC Golf Course and Waste Management Tournament are just minutes to the west, as is the Scottsdale private airport and a wide variety of shops and restaurants. You are near the 101 that will quickly get you around anywhere in the Valley, or simply zig zag a few miles over to Kierland, The Quarter, golf courses, hiking trails and so much more. For VALUE, LOCATION and appointments... this property simply does not compare to any other luxury condominium on the market today, for those that are looking for exceptional value and one of a kind, SoHo Scottsdale #2001 is your perfect find!

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