What’s Ahead For Mortgage Rates This Week – August 22, 2016

Last week’s economic news included the NAHB Housing Market Index, Commerce Department releases on housing starts and building permits issued. Weekly reports on mortgage rates and new jobless claims were also released.

Shortages of available single-family homes have driven up home prices and increased competition among homebuyers; short inventories of homes for sale are affecting affordability in many areas, although buyers seem motivated by lower mortgage rates and some easing of mortgage requirements. Analysts have repeatedly said that the only solution to the shortage of homes is building more homes.

Fortunately, the National Association of Home Builders reported that builder sentiment concerning U.S. housing markets increased in August. The HMI moved up to a reading of 60 in August as compared to July’s reading of 58. Readings over 50 indicate that a majority of builders surveyed are confident about housing market conditions.

According to NAHB, home builders continued to face obstacles including shortages of buildable lots and skilled labor. Regulatory issues were also cited by some builders, but overall, builders remain optimistic about housing market conditions.

Housing Starts Up, Building Permits Issued Slip in July

Commerce Department reading s on housing starts and building permits issued were mixed; housing starts rose from July’s reading of 1.186 million permits issued to 1.211 million permits issued in August. July’s reading was the second highest since the recession but was driven by multi-family construction. Building permits were lower in August with a reading of 1.152 million permits issued against July’s reading of 1.153 million permits issued.

Analysts said that under present market conditions, there is little reason for homebuilders to increase single-family home production as current pricing has put many would-be buyers on the sidelines.

Mortgage Rates Mixed, New Jobless Claims Lower

Freddie Mac reported that average rates for 30-year and 15-year fixed rate mortgages dropped last week while the average rate for 5/1 adjustable rate mortgages rose. The average rate for a 30 year fixed rate mortgage was 3.43 percent and the average rate for a 15-year fixed rate mortgage was 2.74 percent; both readings were two basis points lower than for the prior week. The average rate for a 5/1 adjustable-rate mortgage was two basis points higher at 2.76 percent. Average discount points held steady for fixed rate mortgages at 0.50 percent; average discount points for 5/1 adjustable rate mortgages were lower at 0.40 percent.

New Jobless claims fell by 4000 claims to 262,000 new claims, which was lower than analyst expectations of 265,000 new claims and the prior week’s reading of 266,000 new claims. Job security is important to home buyers and signs of strong labor markets can help propel would-be buyers into the market,

Whats Ahead

This week’s scheduled economic news includes releases on new and existing home sales and consumer sentiment. Weekly reports on mortgage rates and new jobless claims will be released on schedule.

Click Here to See What Your Home is Worth

8009 W Desert Cove Avenue Peoria, AZ 85345

$449,900
4 Beds
2 Baths
1,636 SqFt
Status Active
MLS # 6612345
Property Type Single Family Residence
Price Type --
No HOA!! This Peoria home features 4 bedrooms, 2 baths and a 2-car garage with partial remodeling in recent years. Spacious living and dining rooms that open to the kitchen. The kitchen features newer stainless steel appliances including refrigerator, granite counter tops, tiled backsplash, recessed lighting, and a large walk-in pantry. Master bedroom is spacious and features a walk-in closet and the Master bath features double sinks and a walk-in shower! Newer 6-panel interior doors, ceiling fans, light fixtures, 2'' blinds, toilets, and hardware. Owned soft water system and windows are not original to the home. The backyard has so many wonderful possibilities. There is a children's play area, a fenced PebbleTec play pool, an extended covered patio, a large RV gate with slab parking for an RV or other toys, another area for gardening, and storage sheds. Close to the 101 and 60 Freeways, shopping, dining, and the State Farm Stadium!

11109 E Pima Circle Dewey, AZ 86327

$449,900
3 Beds
2.5 Baths
2,085 SqFt
Status Active
MLS # 6639904
Property Type Single Family Residence
Price Type --
Great 2 story home located on a quaint & quiet cul-de-sac w/minimal HOA fees featuring a golf course, restaurant, fitness center, pool & sports courts. This home features two bedrooms upstairs w/a potential 4th bedroom or den/study downstairs. The primary bedroom is located on the main floor features a walk-in-closet, dual sinks, garden tub/shower & private toilet room. Large open concept w/vaulted ceilings & lots of natural light in the living, dining & option for formal dining or media room. The covered deck off the kitchen & living room opens to mntn & neighborhood views Separate laundry & powder room. Two fenced in yards for children, dogs or a possible garden. Room to park your RV, additional vehicles or toys. New roof, flooring & stairway carpet in 2023 w/ceiling fans throughout.

11929 W Alvarado Road Avondale, AZ 85392

$449,900
4 Beds
2 Baths
2,052 SqFt
Status Active
MLS # 6640101
Property Type Single Family Residence
Price Type --
Stunning 4 bedroom, 2 bath home located on a large north south facing lot in the Cozy Donatela Community. Nice open floorplan to provide a great room concept. Open kitchen with center island, many cabinets for storage & pantry. Large master bedroom with spacious bathroom, dual sinks Plus a large walk-in closet. The backyard is your very own private oasis with large pool, covered patio, low maintenance landscaping with the front and backyard. Owned water softener & RO. Leased Solar to keep those utility costs low. Great location for all your Arizona needs to include schools, parks, shopping, hiking Plus so much more!

8630 E Bella Vista Road San Tan Valley, AZ 85143

$449,900
4 Beds
2 Baths
2,076 SqFt
Status Active
MLS # 6647747
Property Type Manufactured Home
Price Type --
A BRAND NEW Clayton Home is setup and ready for move in! 3% Seller concession offered with a full price offer! This 4 bedroom, 2 bathroom home offers just under 2,100 square feet with an excellent layout. The very popular 'Nirvana' model has an exceptional floor plan with all the modern finishes. There is laminate flooring in all living spaces and carpet in the bedrooms. The luxury kitchen has upgraded cabinets, a huge quartz island, all appliances included, and more. There is a large master bedroom, with a stunning bathroom that includes dual sinks, separate shower/tub, and walk-in closet. This home is situated on approx 1.5+/- acres in a quiet area of San Tan Valley, but close to all local conveniences. Great property for horses or plenty of room to add on shops, storage, with no HOA!