What’s Ahead For Mortgage Rates This Week – May 31, 2016

Last week’s economic reports included new home sales, pending home sales along with weekly mortgage rates and new jobless claims.

New Home Sales Surpass Expectations

Sales of new homes surpassed expectations and the prior month’s reading. April’s reading of 619,000 sales exceeded expectations of 523,000 new homes sold and 531,000 new homes sold in March.  New home sales rose by 16.60 percent on a seasonally adjusted annual basis, which was the highest increase in 24 years. 

Analysts said that April’s new home sales indicate that builders are increasing production of new homes to meet high demand for homes. Short inventories of available homes are credited with driving up demand and home prices. Buyers seeking family homes are contending with investor buyers and cash buyers in popular markets.

With affordability becoming limited in many cities, first time and moderate income homebuyers aren’t buying as many homes as they once did. This development contributes to slowing markets, as move-up buyers generally rely on first time buyers to purchase their homes. 

Shortages of available homes has pressured home builders to break ground on new home construction projects, but builders continue to cite labor shortages and a lack of buildable lots as reasons why they aren’t building homes as fast as homes are needed. 

Pending Home Sales Numbers Suggest Peak Buying Season Returns

Pending home sales were also higher than forecast in April with a reading of 5.10 percent as compared to expectations of 0.80 percent for April and the March reading of 1.60 percent. Pending home sales gauge future closings for home sales and reached their highest level in 10 years and posted a year-over-year gain of 4.60 percent. 

Three of four regional readings for pending home sales posted gains, with home sales in the Midwest posting slower growth. On a year-over-year basis, he South posted a gain of 6.80 percent and the Northeast posted a gain of 1.20 percent. The West saw a jump in pending sales with a reading of 11.40 percent after posting a negative reading in March. 

April’s expansion in new and pending sales suggests that the peak home buying season is back.

Mortgage Rates Rise; New Jobless Claims Fall

Freddie Mac reported higher average mortgage rates. The rate for a 30-year fixed rate mortgage was six basis points higher at 3.64 percent; the rate for a 15-year mortgage rose eight basis points to 2.89 percent. The average rate for a 5/1 adjustable rate mortgage rose seven points to 2.87 percent. Discount points averaged 0.50 percent for all mortgage types. 

New jobless claims dipped last week to 268,000 as compared to an expected reading of 275,000 new claims and the prior week’s reading of 278,000 new claims. Analysts said that New York school employees that were eligible for benefits boosted jobless claims earlier in May due to a non-typical law that allows some school workers to draw unemployment during school closures such as spring break or labor disputes.

What‘s Ahead This Week

This week’s scheduled economic news includes Case-Shiller Home Price Indices, construction spending and reports on inflation, core inflation and consumer sentiment. No reports were scheduled for Monday due to the Memorial Day holiday. 

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1243 E Princeton Avenue Gilbert, AZ 85234

$459,900

3 Beds

2 Baths

1,410 SqFt

Status Active

MLS # 6671087

Property Type Single Family Residence

Price Type --

Gorgeously updated 3 bedroom/2 bathroom home in desirable subdivision close to downtown Gilbert! NO HOA!! Newer tile, newer paint, refinished cabinets & refinished countertops, with newer fixtures throughout. Light and bright with vaulted ceilings. All appliances including washer & dryer. Large ''blank slate'' backyard oasis with mature trees, desert landscaping, pavers. Homes in this adorable community go quickly! Close to Downtown Gilbert, Gilbert Elementary, the 60 freeway, and Gilbert Freestone Park. Don't miss this home!!!

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15243 W Verde Lane Goodyear, AZ 85395

$459,900

3 Beds

2 Baths

1,445 SqFt

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MLS # 6674200

Property Type Single Family Residence

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THIS IS ONE AMAZING COMPLETELY REMODELED AUGUSTA MODEL 3 BD / 2 BA! Grey Porcelain Tile Throughout With Coordinating Grey Carpet In 2 Bedrooms! Two Baths Remodeled With New Tile Flooring, Granite Countertops, Cabinetry, Lighting, Custom Tile Shower Surrounds, Shower Doors, & New Mirrors! The Showers Are Beautifully Done With Custom Tile Designs! New Floor To Ceiling Cabinetry In The Hallway! Beautifully Remodeled Kitchen With Newer Stainless Appliances, Granite Countertops, Ceramic Tile Backsplash, & New Lighting! Wood Shutters In All The Right Places! The Backyard Is An Oasis In The Sun With Beautiful Palm Trees, Large Pergola Over An Extended Travertine Patio, & Exterior Lighting Just Where You Need It! Located In The Scottsdale Of The West Pebble Creek Golf/Pickleball Resort Community! All This Located In The Scottsdale Of The West ... Pebble Creek Resort Community!! Offering 3 18-Hole Golf Courses, 40+ Pickleball & Tennis Courts, 3 Outdoor & 1 Indoor Pool, Theatre, Art Center, & So Much More!

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3917 W Juniper Avenue Phoenix, AZ 85053

$459,900

4 Beds

2 Baths

1,966 SqFt

Status Active

MLS # 6674614

Property Type Single Family Residence

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Updated and move in ready! This Centrally located home is near downtown, Airport, restaurants, shopping, I-17 and 101 Freeways. This is a 4-bed, 2-bath residence with large lot and a pool. The living room boasts vaulted ceilings with exposed beams and a cozy fireplace, creating an inviting ambiance for relaxation. You'll also find a family room for intimate gatherings. The eat-in kitchen has ample counter space, flat-panel cabinets, matching appliances, and a peninsula with a breakfast bar for quick meals. The main bedroom includes a private bathroom for added comfort. New large ceramic tile throughout the home, Fresh paint inside and out, new carpet, replastered pool and new pool equipment and new updated fixtures. Lots of space for RV gate on both sides of home and NO HOA. Discover a backyard with a nice covered patio providing shade and relaxation, leading to a pristine pool - the perfect spot for summer fun and good yard space left over for entertaining. This value won't disappoint!

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4614 N 124th Avenue Avondale, AZ 85392

$459,900

4 Beds

2.5 Baths

2,052 SqFt

Status Active

MLS # 6687478

Property Type Single Family Residence

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Welcome Home! Beautiful desert landscaping & inviting front porch. Bright front room w/ mosaic tile entry & neutral color palette. Chef's kitchen features all stainless appliances + large island w/ granite counter tops. Open kitchen/dining/family room. Don't miss the large custom pantry utilizing the space under the stairs. All bedrooms are upstairs. The primary bedroom is HUGE & features a great walk-in closet + updated bathroom w/ separate tiled shower & garden tub. Ceiling fans throughout. Guest bath remodeled w/ tile surround. Custom shutters throughout. Visit the large quiet back yard through the French doors onto the covered patio. Virtually maintenance free w/ synthetic turf, pavers & desert landscaping in 2021. Producing citrus trees, too. (naval, blood & Valencia oranges) Extras in this home include: all tile downstairs, 2018 lifetime warranty water softener & reverse osmosis, 2023 water heater, 2023 exterior paint, 2018 a/c with touch screen smart thermostat, 2022 new carpet, sunscreens, new gate slats, 6 panel doors, 3 drip lines to back yard, epoxy garage with EV charging capabilities, UV attic light in 2020, smart irrigation system +++. Close to schools, shopping, freeway access and more! This one is neat and clean as a pin. Don't wait.

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