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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10671 E Hedgehog Place Scottsdale, AZ 85262

$4,850,000
5 Beds
5.5 Baths
6,422 SqFt
Status Active
MLS # 6660987
Property Type Single Family Residence
Price Type --
Discover the epitome of luxury living with this shovel-ready, permitted masterpiece—an unparalleled custom home nestled atop a mesmerizing south-facing 2+ acre view lot in Pinnacle Canyon at Troon North. Boasting an expansive 6400 sqft of living space and an additional 1300 sqft of covered patio, this unique residence encompasses 4 bedrooms, 5.5 bathrooms, and a generously sized 3-car garage—all poised and ready for your enjoyment. Seize the opportunity to personalize your haven by selecting finishes and incorporating bespoke customizations. Designed by the esteemed Urban Design Group, this residence not only exemplifies sophistication but also expedites the construction timeline, saving you over a year in build time compared to starting from scratch. Don't miss the chance to call this extraordinary dwelling your own. It's more than a home; it's a lifestyle waiting to unfold. Act now and make this exclusive dream home yours.

5156 N 45th Place Phoenix, AZ 85018

$4,850,000 - 5Br/5Ba -  for Sale in Camelback Sierra, Phoenix
Open House
$4,850,000
5 Beds
4.5 Baths
4,496 SqFt
Status Active
MLS # 6753530
Property Type Single Family Residence
Price Type --
Welcome to this exquisite 5-bedroom, 4.5-bathroom estate, boasting 4,496 square feet of luxurious living space on a sprawling 0.56-acre lot. This architectural masterpiece, completely rebuilt in 2024, with interiors by Joel Contreras Design, offers unparalleled elegance and comfort. The expansive great room, over 2,000 square feet with 16-foot ceilings, seamlessly blends the living, dining, and family areas and features stunning views of Camelback Mountain, creating an inviting atmosphere perfect for entertaining and relaxation. The gourmet kitchen is a chef's dream, featuring Thermador appliances, Vadara Quartz countertops, Shinnoki cabinetry, a 15.5-foot island, and a convenient pot filler. A versatile bedroom suite on the south side serves as an excellent second primary suite or guest retreat. The primary bedroom includes an en-suite bath, custom closet, and direct access to the stunning heated pool. The front yard features a large pool, outdoor kitchen, and dual gas fireplaces, while the backyard offers a more intimate setting with a private patio and a glimpse of Piestewa Peak. Additional features include a temperature-controlled 4-car garage with epoxy flooring, a well-appointed laundry room with dual washers and dryers, and custom Arcadia commercial-grade sliders throughout. The exterior and interior T&G details showcase durable, medium-textured Red Grandis wood, enhancing the home's timeless appeal.

4414 E Vermont Avenue Phoenix, AZ 85018

$4,839,999
4 Beds
4.5 Baths
4,299 SqFt
Status Active
MLS # 6745148
Property Type Single Family Residence
Price Type --
Discover Modern Desert living in this luxurious home located in the heart of Phoenix's Camelback Corridor. Built in 2021. This contemporary home has 4 bedrooms 4.5 baths, and 2 dedicated offices within its split floor plan. The great room and hallways feature impressive 13.5'-0'' ceilings, creating an expansive and open atmosphere. The chef's Kitchen is perfect for entertaining with top-of-the-line appliances and ample counter space. Car enthusiasts will appreciate the convenience of the four-car garage, while great room and rooftop deck offers breathtaking views of Camelback Mountain. The exposed block work adds architectural charm to the design blending seamlessly with the natural desert landscape. This home offers quick and easy access to explore all that the vibrant city of Phoenix.

10023 E Filaree Lane Scottsdale, AZ 85262

$4,800,000
5 Beds
5.5 Baths
5,411 SqFt
Status Active
MLS # 6785079
Property Type Single Family Residence
Price Type --
Golf Membership Available- We are thrilled to announce the commencement of construction on this extraordinary custom home. Receive your full golf membership immediately and enjoy the opportunity to make your selections on finishes —move-in ready in just nine months. Crafted by esteemed builders, Black Stone Development, in collaboration with Graffin Design, this residence promises to be a contemporary masterpiece within the prestigious Desert Mountain community. Highlighted features of the main home include a spacious great room seamlessly connected to a formal dining area, an opulent chef's kitchen, 4 bedrooms, and 4 ½ baths. Ascending to the second level, you'll find a versatile study/lounge, a flex exercise room (with closet space, doubling as a potential 5th bedroom), and an expansive roof deck off. Additionally, a separate casita with a full bath ensures privacy for both homeowners and guests alike. Step into the ultimate outdoor retreat, complete with a magnificent pool and spa, multiple fire pits, serene water features, an outdoor kitchen, and charming patios that perfectly encapsulate the quintessential Arizona lifestyle. Car enthusiasts will appreciate the four-car garage, supplemented with ample storage space. Every detail of this home has been meticulously planned to enhance your living experience. Early buyers will have the unique opportunity to provide input on customization and select interior finishes to tailor the home to their preferences. Don't miss out on this exceptional opportunity to own a piece of Desert Mountain luxury living. Golf membership available at increased price.

9504 N Desert Wash Trail Fountain Hills, AZ 85268

$4,800,000
4 Beds
4.5 Baths
5,607 SqFt
Status Active
MLS # 6774104
Property Type Single Family Residence
Price Type --
Gurczak Luxury Development is proud to present this New Construction Formal Mediterranean Spec Home in the Exclusive Guard Gated Community of Firerock Country Club. This 5,607 Sq. Ft. Home Features 4 Bedrooms w/ ensuite bathrooms, a separate powder room which includes an infrared sauna + a separate Den/Game Room. Each room contains a custom ceiling design - Coffered Ceilings, Floating Ceilings & Ceiling Bands. Oversized 4 Car Garage has ample space for all your toys and includes a bonus storage & workshop area. Estimated completion of January/February 2025.

44030 N Cottonwood Canyon Road Cave Creek, AZ 85331

$4,800,000
5 Beds
6 Baths
5,079 SqFt
Status Active
MLS # 6656613
Property Type Single Family Residence
Price Type --
FANTASTIC NEW PRICE 9/24 NEW MOUNTAINSIDE LUXURY HOME IN THE HILLS OF CAVE CREEK - 10+ ACRES - MESMERIZING CITY LIGHT VIEWS - PRISTINE AND UNOBSTRUCTED DESERT / SAGUARO CACTI / CANYON / MOUNTAIN VIEWS! Nestled near Elephant Mountain and minutes to the incredible Spur Cross Recreation / Conservation Area, this newly constructed 5,079 sq ft luxury custom home has some of the best views in the Valley of the Sun. Rare to find almost 11 acres of pristine natural desert so close to the city! Situated behind both community and private custom driveway gates, this home features 5 ensuite bedrooms, a 5 car garage and is the privacy and quiet that you have been searching for. Careful attention was given to home placement for the jaw-dropping views, sunsets and sun / light exposure. (Continued. . . ) Entering the home through a beautiful 10 ft. iron and glass door, you are immediately hit with views of the hundreds of saguaro cacti, the surrounding desert mountains and downtown Phoenix in the distance. Continue past the enclosed outdoor courtyard to find yourself in the 28 foot tall cathedral ceiling of the barn style great room with giant wood beams and an oversized 60 fireplace with a 100 year old barn wood floor accent wall, creating a gorgeous everyday living and entertaining area. The chef's entertaining kitchen boasts two oversized islands with custom cabinets, beautiful quartz waterfall countertops, Wolf 60 professional double oven range with custom designed hood, SubZero side by side 72 refrigerator / freezer, SubZero wine refrigerator, 2 Cove dishwashers, a Wolf built-in microwave, and oversized farmhouse sink. An impressive butler's pantry with custom shelving, sink, additional refrigerator and Scotsman ice maker, a separate walk-in storage pantry make this kitchen and great room space perfect for gatherings of any size. Open the expansive 35+ feet of sliding glass pocket doors in the great room and kitchen area creating an amazing indoor / outdoor living and entertaining space like no other. The 2,000 sq ft of covered patio wraps around the back and eastern side of the home, giving you endless views and seating areas. From the built-in barbeque that feels like an extension of the kitchen to the two sided, resort style fireplace, pizza oven, and built-in bar area, outdoor entertaining couldn't be easier. The owner's suite is split from the other bedrooms and includes fantastic city light, desert, and mountain views. The suite boasts five large windows, a fireplace with warm floor-to-ceiling wood surround, and an ensuite bathroom with emphasis on a beautiful oversized, glass framed stand alone shower and deep, soaking tub. Passing through to the large, walk-in closet, there is custom built-in cabinetry and a pocket door leading to the laundry room. The laundry room offers plenty of storage and countertop space with two LG front load washers, two LG dryers, built-in collapsible stainless steel drying racks, a dog wash shower, and deep soaking sink. Also in the laundry is an iron Dutch door. Located near the front door and courtyard is an office with a custom, wall length, built-in bookcase. Across the foyer from the office are the four additional bedrooms. They are situated surrounding a common game / bonus room, also featuring an iron Dutch door with access to the back covered patio. Each of the four oversized bedrooms offer beautiful desert, saguaro cacti or mountain views. Walk-in closets with custom shelving, and en suite bathrooms with custom tiled showers with glass enclosures make each bedroom a private suite. The garage can easily accommodate 5 vehicles and currently offers three high speed Tesla charging stations, a water purification system, two tankless smart gas water heaters, a salt system, built-in storage cabinets, and workshop area. The garage floor has custom epoxy coating throughout. The home features a new, private well with a 2,500 gallon underground storage tank and brand new septic system. The well equipment is protected from the elements in its own well house, designed to blend in with the surrounding desert. There is a large, professionally graded lower pad that is perfect for anything you can dream of - a horse barn and arena / turn out, a future casita or in-law suite, sports courts, a resort style pool, extended playground, or car collector and RV garage. Pre-wried for all of the surround sound and smart home features you could want. And not to be missed is the attention to detail in this beautiful home - from the chandeliers and copper lighting fixtures, to the custom barn doors throughout the home and to the highest quality fixtures. It will be hard for you to not get lost in the beauty and tranquility that this home has to offer.

5518 E Sanna Street Paradise Valley, AZ 85253

$4,800,000
4 Beds
4.5 Baths
5,559 SqFt
Status Active
MLS # 6762015
Property Type Single Family Residence
Price Type --
Come check out this GORGEOUS home that is located on the golf course in the coveted Camelback Country Estates! This exquisite 5559 square ft home offers so much! From the gourmet kitchen with 2 Wolf ovens, Wolf cooktop, 2 Asko dishwashers, Subzero Frig/Freezer, custom cabinetry and quartz countertops to the abundance of amenities in this phenomenal home. The highest level of craftsmanship and detail can be found in every inch of this home. Entering the oasis like backyard through the new 16ft sliding glass doors, you're going to feel like you're at a resort. The picturesque surroundings include a stunning new pergola (which has built-in heaters for those chilly Az nights), a sprawling patio, a beautiful pool, a built in fireplace and incredible views. Your buyers won't want to leave!

4796 E Charles Drive Paradise Valley, AZ 85253

$4,800,000
4 Beds
4.5 Baths
4,904 SqFt
Status Active
MLS # 6622192
Property Type Single Family Residence
Price Type --
Designed by award-winning FAIA architect Eddie Jones of Jones Studio and fabricated by premier builder The Construction Zone, the artful fusion of modern materials, integrated into the pristine Sonoran desert is an inspired vision brought to life. Unwind with expanded mountain views and city lights to rejuvenate your soul every day throughout the years! The unmistakable inspiration of Frank Lloyd Wright and the Modernism of Jones Studio are perfectly expressed in this fine residence positioned hillside above Tatum Blvd. Facing sweeping vistas on the eastern horizon, floor to ceiling glass captures superlative views of the McDowell Mountains! The many details of the home are reminiscent of the fit and finish of a luxury yacht and yearn to be experienced for full appreciation. Surrounded by views, the home is set on 1.76 acres for privacy and has been substantially upgraded since 2019. Superbly crafted with a unique blend of masonry, steel, wood and glass: the quality of the build is evident throughout. Your epicurean kitchen is equipped with a full array of the finest Miele appliances and caters to the foodie and connoisseur alike. Top-of-the-line major systems of the home include: recently upgraded and customizable Crestron security system for complete convenience, automated window shades, variable-speed HVAC, highly upgraded EV charging over-sized 3 car air-conditioned garage, recently installed premium whole house water system, recirculating tank-less gas fired water heaters, added floor level heated vents in primary bath, lighted vanity mirrors, organizational electric plug drawers, luxurious towel warmer, elegant control systems, built in shower trays for flow and continuity. LED lighting through-out, pre-wired for sound, recent new pool system equipment installed, conversation area warming fire and so much more. A list of designer furniture will be sold with the home. The primary bedroom has been transformed with deluxe closet cabinetry, dressers, side tables, designer pulls and low-profile ambience lighting and a customized complete king bed system beyond compare. Luxury extras you expect in a fine property have also been added to the primary bath. There is a music/reading room also on the main floor. Completely redesigned, the laundry/pantry area is now an upscale, highly-functional favorite workspace. The lower level has 3 en-suite bedrooms with beautiful views, a fitness/yoga room and a media lounge space with patio access. The largest en-suite bedroom also has a separate patio entrance and could be a second primary. Panoramic mountain vistas with hanging clouds, picturesque skies and the most gorgeous sunrises, this is truly an inspirational property to be experienced.

4949 E Lincoln Drive Unit 34 Paradise Valley, AZ 85253

$4,800,000 - 3Br/4Ba -  for Sale in La Posada, Paradise Valley
Open House
$4,800,000
3 Beds
3.5 Baths
4,540 SqFt
Status Active
MLS # 6770188
Property Type Single Family Residence
Price Type --
Step into MONTELUCIA RESORT VILLA 34, a breathtaking masterpiece designed by the visionary TADDEY KARLIN OF BEVERLY HILLS, where every detail has been meticulously curated to deliver a living experience like no other. Nestled on the LARGEST ULTRA- PREMIUM LOT in the exclusive Montelucia Resort, this villa is a one-of-a-kind sanctuary that blends TIMELESS ELEGANCE with CONTEMPORARY LUXURY. From the moment you walk through the doors, you are greeted by UNRIVALED VIEWS of the majestic Camelback Mountain. The villa's design harmonizes beauty and functionality, with a focus on delivering both EXTREME PRIVACY and IMMERSIVE COMFORT. The CUSTOM CURATED FURNISHINGS can offer a truly TURNKEY EXPERIENCE where luxury and sophistication come together effortlessly. Indulge in world-class amenities from GOURMET ROOM SERVICE to THREE EXQUISITE POOLS, and the RENOWNED REJUVINATING SPA, all at your fingertips. Whether entertaining or unwinding, this villa elevates every moment, making it more than just a home  it's a retreat where your lifestyle reaches new heights. Perfect for discerning buyers who seek a harmonious blend of resort-style living and privacy, Montelucia Resort Villa 34 is the ultimate expression of REFINED LIVING in the heart of PARADISE VALLEY.

9030 N 48th Place Paradise Valley, AZ 85253

$4,799,000
6 Beds
6.5 Baths
8,420 SqFt
Status Active
MLS # 6722994
Property Type Single Family Residence
Price Type --
Set in a quiet cul de sac in the coveted 3C's school district, this impressively remodeled PV estate boasts 6 generously sized en suite bedrooms & 6.5 baths, including attached casita with full kitchen and sep entrance + attached LL guest suite with lounge and fitness room, ideal for multi-generational living! Upon entering, guests are greeted by soaring 20 ft ceilings, a formal living room, a central kitchen bathed in natural light, an office, multiple dens for relaxing movie watching, and an immense great room for large scale entertaining! Mountain Views abound in the stunning backyard w/pool, spa, outdoor kitchen, firepit and many gracious conversation patios. Car enthusiasts will love the massive 5-car garage space (2 w/hvac) . One of the LOWEST priced remodeled homes per sq ft in Paradise Valley, priced well below appraised value! This home offers the perfect blend of expansive, upscale, yet comfortable living!

19946 N 103rd Street Scottsdale, AZ 85255

$4,795,000
4 Beds
4.5 Baths
6,972 SqFt
Status Active
MLS # 6758590
Property Type Single Family Residence
Price Type --
SILVERLEAF CLUB GOLF MEMBERSHIP AVAILABLE! Nestled next to the tranquil waters of the private lake at Desert Springs Park, this home in Silverleaf embodies the timeless allure of Spanish Colonial architecture, offering a perfect blend of elegance, comfort, and charm for discerning homeowners seeking a sanctuary in the heart of Scottsdale's most exclusive community. As you approach from the private, tree lined street, your first glimpse of the home is nothing short of captivating, exuding curb appeal with its stately presence and lush, meticulously manicured landscaping. Step inside and you are delighted by interior spaces that are designed to be both welcoming and intimate, with cozy alcoves for quiet moments and larger gathering areas perfect for entertaining.

4754 E Valley Vista Lane Paradise Valley, AZ 85253

$4,795,000 - 5Br/5Ba -  for Sale in Camelhead Estates Unit 2, Paradise Valley
Open House
$4,795,000
5 Beds
5 Baths
5,129 SqFt
Status Active
MLS # 6735878
Property Type Single Family Residence
Price Type --
Arizona living at its finest. An artistically inspired estate with gated privacy and iconic Camelback Mountain views. Showcasing botanical specimens and a variety of mature trees, the resort backyard, lush setting and huggable mountain views, make for an unparalleled Paradise Valley experience. Two master suites, two guest rooms, an office and separate enclaves make for relaxed living throughout the home. The artistic attention to detail is unsurpassed. Antique hand carved doors in both the interior and exterior, exemplary painted touches throughout and a flowing floor plan make this a truly signature home. The private approach & secondary entrance highlight the cobble stone circular driveway and water features. This unique home and its stellar setting form an entertainer's delight. Photography to be updated to reflect current changes in home.

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