What’s Ahead For Mortgage Rates This Week – July 25, 2016

Housing Starts, Building Permits Issued Rise

Commerce Department reports on housing starts and building permits issued were released Tuesday. Housing starts rose to 1.189 million in June against expectations of 1.165 million starts and May’s downwardly revised reading of 1.135 million starts, Housing starts rose by 4.80 percent on a seasonally-adjusted annual basis. This is good news for housing markets, but analysts said that demand for homes continued to exceed available supplies.

Building permits issued also rose in June to 1.53 million as compared to May’s reading of 1.136 million permits issued.

Existing Home Sales Increase: National Association of Realtors®

Sales of previously-owned homes rose three percent year-over-year and reached their highest level since February 2007 in June. Existing home sales rose by 1.10 percent in June to a seasonally-adjusted annual rate of 5.57 million sales. Analysts forecasted a reading of 5.48 million sales of pre-owned homes based on May’s reading of 5.51 million sales.

Analysts said that first-time home buyers are returning to housing markets and helped boost June sales and cited changing buyer demographics that suggest a return to owner-occupant home sales. First-time buyers accounted for 33 percent of pre-owned home sales in July, which was their highest reading since 2012. First-time buyers are important to housing markets as their purchases of existing homes enable current homeowners to sell their homes to buy larger homes or to relocate.

Mortgage Rates Rise, New Jobless Claims Fall

Mortgage rates rose across the board last week according to Freddie Mac’s weekly report. Rates for a 30-year fixed rate mortgage averaged 3.45 percent, which was three basis points higher. The average rate for a 15-year fixed rate mortgage also rose three basis points to 2.75 percent; rates for a 5/1 adjustable rate mortgage averaged 2.78 percent. Discount points averaged 0.50 percent for fixed-rate mortgage and 0.40 percent for 5/1 adjustable rate mortgages.

New jobless claims sustained their streak and fell last week to 253,000 against predictions of 260,000 new claims filed and the prior week’s reading of 254,000 new claims filed. Analysts hailed declining jobless claims as a strong indicator that the economy and labor markets continue to improve. New jobless claims have remained below the key reading of 300,000 for 73 weeks. The four-week rolling average of new jobless claims fell by 1250 claims to 257,750. This reading is considered less volatile than week-to-week readings and offers evidence of steady improvements in labor markets.

What’s Ahead

Next week’s scheduled economic news includes the S&P Case-Shiller Housing Market Index, readings on new and pending home sales and the FOMC committee’s post-meeting statement on Federal Reserve monetary policy decisions. Analysts widely expect the Fed to hold firm on its current federal funds rate of 0.25 to 0.50 percent.

Weekly reports on mortgage rates and new jobless claims will be released along with a reading on consumer confidence.

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!