What’s Ahead For Mortgage Rates This Week – June 6, 2016

What's Ahead For Mortgage Rates This Week - June 6, 2016Last week’s housing related news was limited to Construction Spending and Freddie Mac’s mortgage rates survey, but labor reports suggested an economic slowdown may be in the works.

Construction Spending Slips in April, Mortgage Rates Mixed

According to the Commerce Department, overall construction spending slipped in April to -1.80 percent as compared to March’s reading of +1.50 percent and May’s expected reading of +0.70 percent. Residential construction spending was 1.50 percent lower, which doesn’t help ongoing shortages of available single-family homes. Builders have repeatedly cited labor shortages and lack of developed lots as obstacles to building more homes. Year-over-year construction spending was 4.50 percent higher.

Freddie Mac reported higher rates for fixed-rate mortgages while the average rate for a 5/1 adjustable rate mortgage was one basis point lower at 1.87 percent. Rates for a 30 year fixed rate mortgage averaged two basis points higher at 3.66 percent; rates for a 15-year fixed rate mortgages were three basis points higher at 2.92 percent. Average discount points were unchanged for all loan types at 0.50 percent.

Labor Reports Indicate Slowing Jobs Market And Economy

According to the Non-farm Payrolls report for May, U.S. jobs increased at their lowest rate in five years with 38,000 new private and public sector jobs added. Temporary hiring also hit its lowest reading in seven years, which was seen as a negative as temporary jobs often transition to permanent positions.

Analysts said that May’s extremely low reading for jobs created indicates that a revision is likely. This inconsistency was supported by the national unemployment rate of 4.70 percent, but the lower jobless rate was attributed to workers leaving the labor force.

ADP’s May reading for private sector jobs rose to 173,000 jobs against expectations of 165,000 jobs and April’s reading of 268,000. This reading was further evidence that the Non-farm Payrolls report was likely inaccurate.

Last week’s new jobless claims fell to a five-week low of 267,000 as compared to expectations of 279,000 new claims and the prior week’s reading of 268,000 new claims.

What’s Ahead This Week

Economic news scheduled for this week include a speech by Federal Reserve Chair Janet Yellen on Monday; this speech could foreshadow the Fed’s decision to raise or not raise the Fed’s target federal funds rate during its FOMC meeting later this month.

Readings on job openings and consumer sentiment will be released along with weekly reports on mortgage rates and new jobless claims.

418 S 226th Drive Buckeye, AZ 85326

$450,000
3 Beds
2 Baths
1,735 SqFt
Status Active
MLS # 6677357
Property Type Single Family Residence
Price Type --
This is one special property! Located on the 18th green of the Sundance Golf Course. Spectacular MOUNTAN VIEWS! This wonderful 3-bedroom, 2 bathroom home features beautiful QUARTZ COUNTER TOPS, a large kitchen island plus a breakfast bar. The kitchen opens to the spacious family room and dining area. The 3rd bedroom is set up perfectly to be used as a den, office or bedroom. The primary suite features an ensuite with dual sinks and walk-in closet with updated counter tops. Step outside to your covered patio with sunshades, misters, and manicured gardens. Take a dip in the SPARKLING POOL while relaxing with your favorite beverage. The home is energy efficient with SOLAR and SUNSCREENS. Don't miss your chance to own your move-in ready home in Sundance, BEING OFFERED FULLY FURNISHED. Sundance is your premier Active Adult Community in Buckeye. Enjoy your days either golfing, swimming, tennis, pickleball, working out in the fitness center and plenty of other social activities. The Sundance Golf Club features an 18-hole golf course, pro-shop, restaurant. Make Sundance your home today. Some of the home's upgrades include: Plantation shutters Upgraded irrigation system Upgraded lighting R.O System Upgraded baseboards Crown Moulding 100 gallon water heater Built in cabinets in the garage Epoxy garage floors Pool filter, 1 year old Golf ball Sunscreens Patio Misters Paver patio New refrigerator Washer 1 year old Fruit trees (lemon and lime)

19031 N 15th Drive Phoenix, AZ 85027

$450,000
4 Beds
2 Baths
1,501 SqFt
Status Active
MLS # 6679359
Property Type Single Family Residence
Price Type --
Your dream home is here! Step inside this stunning Remodeled Residence located in North Phoenix. A dream Kitchen with gorgeous tall, slow close cabinets , brand new SS appliances and stunning quartz counters. New floors, New Roof, New AC, interior and exterior paint, and light fixtures throughout. Beautifully remodeled Bathrooms with custom vanities and an abundance of natural light. This 1501 sqft, 4bed, 2 bath home has a huge backyard, covered patio, a few citrus trees, and plenty of space to use as you wish, RV gate and plenty of parking spaces! Close to shopping, dinning, and freeway 101, and I17.

37801 N Cave Creek Road Cave Creek, AZ 85331

$450,000
2 Beds
2 Baths
1,140 SqFt
Status Active
MLS # 6679395
Property Type Townhouse
Price Type --
Must see CHARMING single level townhouse designed by renowned valley architect Bennie Gonzales features a TWO car garage, TWO large outdoor patios and GORGEOUS MOUNTAIN AND SUNSET VIEWS!!!. Travertine flooring throughout, Great Room floorplan w/Dining area. Sunny, south facing kitchen, warm wood cabinets, granite countertops, stainless steel appliances & beamed ceiling. 2 spacious bedrooms, owner's suite features an office/den/additional closet. Walk to great shopping, dining, entertainment in Cave Creek & enjoy year round outdoor activities. Owners LOVE spending time & entertaining on the oversized, south facing paver patio w/synthetic grassy area. Lots of natural area open space, wonderful community pool, heated jacuzzi & tennis court. Excellent Lock & Leave/Seasonal Rental. All skylights are new. Garage door is new. Front patio pavers new. Master bath in this unit has a walk-in shower and could be converted back to a tub/shower. 3 Month minimum rental per current HOA rules.

950 E Kelsi Avenue San Tan Valley, AZ 85140

$450,000
4 Beds
3 Baths
2,401 SqFt
Status Active
MLS # 6681792
Property Type Single Family Residence
Price Type --
Immaculate two-story home located in a desirable area, boasting ample living space. This meticulously maintained residence provides comfortable accommodation for all. Upon entering, you are greeted by a welcoming foyer that flows seamlessly into the main living area, ideal for entertaining guests or relaxing with loved ones. The well-appointed kitchen is a chef's delight with plenty of cabinet space for storage. Upstairs, the loft space is perfect for any need. The master suite is complete with a luxurious en-suite bathroom featuring dual sinks, a soaking tub, and a separate shower. The backyard is blank slate awaiting ready for your imagination to unfold! With its charming curb appeal, convenient location, and abundance of living space, this gem is sure to impress.