What’s Ahead For Mortgage Rates This Week – June 27, 2016

Whats Ahead For Mortgage Rates This Week May 18 2015Last week’s economic news was dominated by Great Britain’s vote to withdraw from the European Union. New and Existing Home Sales were released along with weekly reports on mortgage rates and new jobless claims.

“Brexit” Vote Tanks Stocks, Could Cause Lower Mortgage Rates

US stocks plunged in reaction to the news of Britain’s decision to leave the EU and the resignation of its Prime Minister. While investors don’t want to see their 401(k) values crash, mortgage rates may also fall as a result of “Brexit”. Fallout caused by economic uncertainty connected with Great Britain’s move to regain independence is expected to have lingering influence on global financial and economic developments in coming months and years.

Fed Chair Janet Yellen said in testimony before the Senate Banking Committee that Great Britain’s decision to leave the EU could have significant consequences. Chair Yellen’s comments were made prior to Friday’s announcement of Great Britain’s decision.

Existing Home Sales Highest Since 2007, Home Prices Continue Rising

According to the National Association of Realtors® May sales of pre-owned homes hit their highest level since February 2007. May’s seasonally-adjusted annual reading of 5.53 million sales fell just shy of analysts ‘expectation of 5.55 million sales, but exceeded April’s reading of 5.43 million sales. May’s reading represented a 1.80 percent increase in sales and a year-over-year increase of 4.50 percent.

Short supplies of available homes continued to drive up home prices according to NAR chief economist Lawrence Yun, who expressed concerns about affordability as home prices continued to outstrip wages and inflation. The national median home price was $239,700 in May, which was 4.70 percent higher year-over-year. Although first-time buyers typically represent about 40 percent of homebuyers, they currently account for 30 percent of homebuyers.

New Home Sales Fall in May

Sales of new homes slowed in May after jumping in April. According to the Commerce Department, sales of new homes fell by 6.00 percent on a seasonally adjusted annual basis. 551,000 new homes were sold against the expected reading of 560,000 new homes sold and April’s downwardly revised reading of 586,000 new homes sold. New home sales were 8.70 percent higher year-over-year in May.

Mortgage Rates Rise, Weekly Jobless Claims Fall

Last week’s mortgage rates don’t reflect the Brexit decision and rose slightly on Thursday. The average rate for a 30-year fixed rate mortgage was two basis points higher at 3.56 percent; the average rate for a 15.year fixed rate mortgage was also two basis points higher at 2.83 percent. The average rate for a 5/1 adjustable rate mortgage was unchanged at 2.74 percent. Discount points rose to 0.60 percent for a 30-year fixed rate mortgage but were unchanged at 0.50 percent for 15-year fixed rate mortgages and 5/1 adjustable rate mortgages.

What’s Ahead

Next week’s economic events include Case-Shiller Housing Market Indices, Pending Home Sales, Consumer Spending and Construction Spending

5610 W Willow Ridge Drive Laveen, AZ 85339

$447,990 - 4Br/3Ba -  for Sale in Estrella Crossing, Laveen
New
$447,990
4 Beds
3 Baths
1,912 SqFt
Status Active
MLS # 6683276
Property Type Single Family Residence
Price Type --
Beautiful Brand New Home in a Highly Desirable Central Location - Featuring countless upgrades such as 9' ceilings, Shaw - Milan - Surf 17x17 Tile, Granite countertops in the kitchen. Whirlpool Stainless steel appliances. White cabinets. Energy-efficient features throughout, Programmable thermostat, gas heater, gas range. Spacious walk-in closet in owners suite. Front yard landscaping, covered patio in the backyard. Spectacular Mountain Views! Minutes from downtown Phoenix in a master-planned community featuring walking trails, greenbelts, neighborhood parks and playgrounds. Conviniently located off the Loop 202 and near schools, shopping and dining!

11496 W Arron Drive Youngtown, AZ 85363

$447,900
3 Beds
2 Baths
1,795 SqFt
Status Active
MLS # 6655387
Property Type Single Family Residence
Price Type --
3 bedrooms, 2 bath, and all of the space you could imagine makes this floor plan the perfect home for you! This new home comes filled with upgrades including a full suite, stainless steel energy-efficient kitchen appliances, beautiful granite countertops, stunning wood cabinets, designer light fixtures, and an attached two-car garage. The Prescott floor plan also showcases a private master suite complete with a walk-in closet, as well as a spacious kitchen with walk-in pantry, fully fenced backyard, covered patio and front yard landscaping. As an added bonus, this home has a separate den off the entryway, giving you space for a formal dining room or home office. Whatever your heart desires, the Prescott is sure to have it! Enjoy the view of the White Tank Mountains from your NEW home!

15311 W Dreyfus Street Surprise, AZ 85379

$447,900 - 4Br/3Ba -  for Sale in Marley Park, Surprise
Open House
$447,900
4 Beds
2.5 Baths
2,182 SqFt
Status Active
MLS # 6628799
Property Type Single Family Residence
Price Type --
Welcome to one of the most idyllic communities in Surprise, original Marley Park. The community pool is around the corner, and one of 18 unique parks is right out your door. Don't forget the manicured rolling grassy areas that you are welcome to enjoy... without the maintenance. The calendar is full of events all year round, with a ton of activities for the kids. Walk to one of the top-rated schools in the area (.6 mi), while enjoying the craftsman architecture and mature trees. This 4 bed/ 2.5 bath home is one of the original models. ALL appliances included! Downstairs you'll find formal dining space, an open kitchen, granite counters, and plantation shutters. Primary bedroom is on the main level, with three bedrooms upstairs. Less than 5 min to the 303 and Prasada shopping

17642 W Colter Street Litchfield Park, AZ 85340

$447,805
4 Beds
2.5 Baths
1,960 SqFt
Status Active
MLS # 6666776
Property Type Single Family Residence
Price Type --
Up to 2% of total purchase price towards closing costs incentive offer. Additional eligibility and limited time restrictions apply. MLS#6666776 July Completion. Discover the Harlow at Allen Ranches: a spacious 1-story layout spanning 1,960 sq. ft. with 4 beds, 2.5 baths, a 2-car garage, and a study. It's the largest among the single-story options, ensuring satisfaction. Step into the foyer leading to a dreamy home office. Explore further to find an open kitchen, casual dining, and great room space. Embrace Arizona's beauty from your own outdoor haven. The owner's suite boasts a private bath with double sinks and a walk-in closet, offering an ideal retreat. Design options include: upgraded gas range, wood look 6 x36 wood look plank, shaker style cabinets, and custom tile backsplash