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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9374 W Sandstone Mountain Drive Casa Grande, AZ 85194

$599,000
4 Beds
2 Baths
2,425 SqFt
Status Active
MLS # 6785934
Property Type Single Family Residence
Price Type --
Stunning New 2024 home features 4 bedrooms, 2 bathrooms, and a dedicated office, along with a spacious 3-car garage, all set on a full-acre lot in a highly sought-after area just minutes from I-10. Experience the open & inviting layout designed to make the most of every square foot. The kitchen shines with elegant Shaker-style white cabinets, luxurious Quartz countertops, modern stainless steel appliances & pantry. Relax in the bright Great room, which offers flexible options for dining or entertainment. Stylish neutral tile flows through the main high-traffic areas, while cozy carpeting enhances the bedrooms. Retreat to the expansive Primary suite, complete with a primary bathroom featuring a walk-in shower. Other features include fully fenced yard with block walls. Back shady patio and an expansive enclosed back yard with endless possibilities. HOA permits R.V.'s, Boats and other recreational vehicles for a low 30 per month. This treasure is ready for immediate occupancy.

2118 E Voltaire Avenue Phoenix, AZ 85022

$599,000
3 Beds
2.5 Baths
1,754 SqFt
Status Active
MLS # 6772448
Property Type Townhouse
Price Type --
The Agave - A rare combination of Space, Style, Quality, and Value where Design Matters. Be inspired by the warm tones and natural textures of the desert where the Sagebrush and Adobe interior color schemes boldly echo the beauty of The Agave. Modern, Flat-Panel Kitchen Cabinetry in Matte color-ways, Solid-surface, Spa-Inspired Flat-Panel vanity cabinets in natural-wood tone finishes in Bathrooms. Standard LVT flooring installed in the entire home, Quartz Countertops and Tile shower surrounds. Standard Accent painted interior doors and jambs for a bold, effortless design touch. Ceiling fans included as well as EV prewire. The Wren showcases a generous backyard and second floor deck to bring the outside in.

10556 S 297th Avenue Palo Verde, AZ 85343

$599,000
4 Beds
3.5 Baths
2,312 SqFt
Status Active
MLS # 6666831
Property Type Single Family Residence
Price Type --
Welcome to your dream home! This stunning semi-custom residence spans over 2,300 sqft and is nestled on a generous 1-acre lot, free from HOA restrictions. Inside, you'll find a beautifully designed split floor plan featuring 4 spacious bedrooms and 3.5 baths. Each room offers direct bathroom access with premium showers, ensuring comfort and convenience for everyone. The gourmet kitchen is a chef's delight, equipped with SS appliances and elegant finishes. Step outside to enjoy the charm and privacy provided by the farm-style fencing. We warmly invite all buyers and buyer's agents to tour this remarkable property. Experience unmatched elegance and comfort!

4380 W Eagle Street Show Low, AZ 85901

$599,000
3 Beds
2 Baths
1,632 SqFt
Status Active
MLS # 6730924
Property Type Single Family Residence
Price Type --
Experience the beauty of White Mountain living in this furnished cabin located in the exclusive Eagle Mountain Estates. Built in 2020, this home showcases exceptional craftsmanship throughout its 3-bedroom, 2-bath layout. Set on a naturally landscaped lot with engineered drainage for peace of mind, this cabin offers oversized covered porches both in the front and back—ideal for taking in the serene surroundings and outdoor living year round. Inside, you'll find splendid features including granite countertops, custom cabinets, and elegant tile work. The vaulted ceilings add a sense of spaciousness to the home. Located in a peaceful, gated community, this cabin provides a perfect blend of tranquility and stylish amenities. Welcome home!

20590 W Daniel Place Buckeye, AZ 85396

$599,000
5 Beds
2 Baths
2,230 SqFt
Status Active
MLS # 6758248
Property Type Single Family Residence
Price Type --
This beautiful 5-bedroom, 2-bath home, located in the Main Street District, offers an inviting and spacious layout, perfect for those who love to entertain and enjoy outdoor living. With a soaring vaulted entry, 10-ft ceilings, and 8-ft doors, this home feels spacious and inviting at every turn. The open-concept kitchen and great room provide a seamless flow, making it ideal for gatherings. The kitchen is equipped with granite countertops, stainless steel appliances, a newer Bosch dishwasher and disposal, large pantry, and a stylish backsplash. The fridge, freezer, washer, and dryer all convey with the home, ensuring it's move-in ready. The primary suite is a peaceful retreat with beautiful mountain views, featuring double sinks, a separate tub and shower, and a generously... sized walk-in closet. The four additional bedrooms are conveniently located near the secondary bathroom, which features double sinks and a tub-shower combo. Step outside to your own personal oasis and relaxunder the extended covered patio, complete with roller shades for added privacy and comfort. Unwind in the pergola's cozy sitting area, the perfect spot to take in stunning evening sunsets. The beautifully designed paver pathways, planters, and additional sitting areas enhance this outdoor space, offering a variety of options for entertaining or simply enjoying the peaceful surroundings. With breathtaking mountain views and view fencing that creates a sense of openness while maintaining privacy, this backyard retreat is truly a gem. Paver-lined pathways lead from the backyard to the front, providing a cohesive and outdoor space. Whether you're entertaining friends or simply enjoying a quiet evening under the stars, this home offers a balance of comfort and charm. This home is filled with thoughtful upgrades, including a new saltless water softener installed in 2023, a Chamberlain garage door opener installed in 2023, side entry door and built-in cabinets with a workspace in the garage. The A/C unit features an air scrubber filtration system for cleaner air. Additional features include exterior recently painted in 2022, rain gutters installed at front entry, a screened door on the front porch, and ceiling fans throughout for added comfort. Built by Meritage, this house is highly energy-efficient, featuring tinted UV-protected windows, climate-sealed foam insulation, and 2x6 construction. Conveniently located near Main Street, Walton Park, Verrado Elementary, and Verrado Middle School, this home is perfect for those seeking vibrant community engagement or simply to meet friends and neighbors at the park for enjoyable afternoons. Verrado offers an array of amenities, including shopping, local restaurants, hiking and biking trails, two additional outdoor pool locations, a fitness center, top-rated A+ schools, and over 78 parks. Community events are hosted throughout the year, creating a connected lifestyle. Make this your next home today!

11915 E Magma Road Florence, AZ 85132

$599,000
4 Beds
2 Baths
1,705 SqFt
Status Active
MLS # 6763508
Property Type Single Family Residence
Price Type --
Bring horses, RV, toys, & build your dream 1500 sq. ft. workshop on the 30' x 50' poured concrete pad! Huge 1.248-acre lot, No HOA, custom fencing, 3 car 800 sq. ft. open fully insulated garage with its OWN AC, wash sink, & 220V outlets. Completed in 2022 with 2x6 construction & modern design. Super bright kitchen featuring quartz, vaulted ceiling, and plenty of storage in the island & 42'' uppers. Elegant touches are prominent throughout the home with a barn door in primary, custom closet, modern lighting, & beautiful plank tile flooring. The home has been professionally sealed for efficiency & to keep out those pesky desert bugs. Front & back irrigation includes smart timer, valve box, & easily located expansion ends. Home warranty transfers through 7/25! 100% USDA financing eligible!

4410 Noble Drive Wickenburg, AZ 85390

$599,000
2 Beds
2 Baths
1,588 SqFt
Status Active
MLS # 6757474
Property Type Single Family Residence
Price Type --
2.75% assumable loan. This beautifully designed home within the renowned Wickenburg Ranch community offers two bedrooms, two bathrooms, and an open floor plan that seamlessly connects the living spaces for a modern, airy feel. The living area flows effortlessly into a well-appointed kitchen, complete with ample cabinetry, sleek countertops, and a layout that's perfect for both casual meals and entertaining. The large sliding glass windows not only flood the home with natural light but also provide easy access to the outdoor living spaces, creating a perfect blend of indoor-outdoor living. Outside, this home truly shines. A beautifully landscaped yard frames a stunning pool, creating a serene oasis ideal for relaxation or entertaining. The covered patio, accessed through the large sliding glass doors, extends the living space outdoors, providing the perfect spot to enjoy a morning coffee or evening sunset. The charming covered front porch adds a welcoming touch, perfect for soaking in the tranquility of the desert surroundings. This home offers an unparalleled living experience, capturing the essence of refined desert living in one of Arizona's most sought-after communities.

1130 N 2nd Street Unit 103 Phoenix, AZ 85004

$599,000
2 Beds
2.5 Baths
1,378 SqFt
Status Active
MLS # 6762880
Property Type Townhouse
Price Type --
Experience modern urban living at its finest in this stylish 2 bed/2.5 bath condo nestled in the heart of downtown Phoenix. Step inside to discover a seamless and inviting floor plan that effortlessly blends living, dining, and kitchen spaces. The great room boasts 2 garage-door windows, blurring the line between indoors and outdoors, creating the perfect setting for entertaining. Neutral tones, soaring ceilings, wood slat wall feature and upgraded recessed lighting enhance the contemporary ambiance. The immaculate kitchen exudes an industrial chic vibe, featuring white cabinets, sleek built-in appliances, quartz counters, and a waterfall center island with a breakfast bar. Two main bedrooms offer serene retreats with walk-in closets, upstairs laundry and private bathrooms. picturesque views from both bedrooms, while the ground floor gated patio offers a tranquil space overlooking Margaret T. Hance Park. This unit also presents a unique opportunity for business or residential use, adding to its versatility. Located amidst the vibrant downtown scene, you'll relish easy access to a plethora of dining, shopping, and entertainment options, all just moments from your doorstep. All Furniture available for purchase. 1 Covered Parking space included in gated garage. 3 month minimum for rentals.

10684 S 297th Avenue Palo Verde, AZ 85343

$599,000
4 Beds
3.5 Baths
2,312 SqFt
Status Active
MLS # 6759238
Property Type Single Family Residence
Price Type --
Welcome to your dream home! This stunning semi-custom residence spans over 2,300 sqft and is nestled on a generous 1-acre lot, free from HOA restrictions. Inside, you'll find a beautifully designed split floor plan featuring 4 spacious bedrooms and 3.5 baths. Each room offers direct bathroom access with premium showers, ensuring comfort and convenience for everyone. The gourmet kitchen is a chef's delight, equipped with SS appliances and elegant finishes. Step outside to enjoy the charm and privacy provided by the farm-style fencing. We warmly invite all buyers and buyer's agents to tour this remarkable property. Experience unmatched elegance and comfort!

4333 S Pony Rider Trail Gold Canyon, AZ 85118

$599,000
2 Beds
2 Baths
1,696 SqFt
Status Active
MLS # 6766967
Property Type Single Family Residence
Price Type --
RESORT Style Backyard with Huge Extended Covered Patio Backs to Natural Wash with Superstition MOUNTAIN Views! Enjoy the Large Lap pool & NEWER Hot Tub to Relax after a nice swim.. 2 Bdrm/2 Bath with Separate Office/Den...Kitchen has a huge Island & Breakfast Bar with Granite Counters, Copper Sink & Backsplash, Open to Great Room / Formal Dining...Large Master Suite with Bay Window, Updated Master & Guest Baths...Enjoy this Beautiful Gold Canyon East Community close to walking and hiking trails, with low HOA dues.

2300 E Campbell Avenue Unit 129 Phoenix, AZ 85016

$599,000
2 Beds
2.5 Baths
1,462 SqFt
Status Active
MLS # 6771475
Property Type Apartment
Price Type --
Experience the perfect blend of style and convenience in this sophisticated 2-bedroom, 2.5-bathroom condo with huge RARE private outdoor patio in prime Biltmore area. Designed with modern elegance, the condo features a gourmet kitchen with top-of-the-line stainless steel appliances, ideal for entertaining. The open-concept living area flows onto a spacious inside/out living areas, perfect for relaxing or hosting friends. Enjoy two primary suites with private baths, hardwood floors, custom walk-in closets, and power shades. The building boasts exceptional amenities, including a heated pool, two-story gym, rooftop patio with Camelback Mountain views, dog wash area, secure bike storage, and a chic club room. Additional conveniences include a separate storage unit and electric car charger With 24-hour surveillance and secure entry, this home offers peace of mind for frequent travelers. Located just blocks from shopping, dining, Trader Joe's, Whole Foods, and the Biltmore, this condo is an ideal retreat for the on-the-go professional.

6713 E Elmwood Street Mesa, AZ 85205

$599,000
5 Beds
3.5 Baths
2,474 SqFt
Status Active
MLS # 6781829
Property Type Single Family Residence
Price Type --
Discover your dream home in this charming 5-bedroom residence, perfectly designed for multi-gen living! Enjoy the convenience of a full bedroom and bathroom located on the main floor. Step into a stylish kitchen featuring beautiful granite countertops, large kitchen island, and beautiful shaker cabinets —perfect for cooking and entertaining. Upstairs, you'll find a luxurious primary en-suite, along with three additional bedrooms and a conveniently located laundry room. The spacious loft is ideal for teens, movie nights, or a cozy retreat. The backyard is ready for your creative ideas to transform it into your personal oasis. Nestled in a small gated community, this home is just minutes away from schools, dining and shopping. Don't miss out on this fantastic opportunity!

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