What’s Ahead For Mortgage Rates This Week – December 26, 2016

Last week’s economic news included readings on consumer spending, core inflation new home sales and regularly scheduled readings on mortgage rates and new jobless claims.

Consumer Spending Dips in November

Commerce Department reports on consumer spending in November indicated that consumer spending was lower in November with 0.20 percent growth as compared to October’s reading of 0.40 percent growth. November’s reading for core inflation, which excludes volatile food and energy sectors, was flat as compared to expectations of 0.10 percent growth and October’s reading of 0.10 percent growth.

New Jobless Claims Rise to 6Month High

New jobless claims jumped to 275,000 last week as compared to an expected reading of 258,000 new claims and the prior week’s reading of 254,000 new claims. New claims typically rise during the holiday season due to school and other workplace closures.

There was good news as new jobless claims remained below the benchmark of 300,000 new claims for 94 consecutive weeks. This streak of new claims below 300,000 new claims is the longest since 1970. Increasing numbers of “contingent” workers contributed to volatility in employment; The Rand Corporation reported that 10.10 percent of the workforce was contingent workers in 2005; the percentage of contingent workers increased to 15.80 percent of the U.S. workforce in 2015.

Mortgage Rates, New Home Sales Rise

Freddie Mac reported a jump in mortgage rates last week; the average rate for a 30-year fixed rate mortgage was 14 basis points higher at 4.30 percent. The average rate for a 15-year fixed rate mortgage was 15 basis points higher at 3.52 percent; the average rate for a 5/1 adjustable rate mortgage rose 13 basis points to 3.32 percent. Analysts said that the 10-year Treasury rate rose 10 basis points in response to the Fed raising its target funds rate. New home sales gained in November with a seasonally adjusted annualized reading of 582,000 sales as compared to 285,000 expected sales and October’s annual rate of 563,000 sales of new homes. This was the second highest reading for new home sales since early 2008. Builders will be watching mortgage rates and new home sales in the New Year to determine how rising mortgage rates will impact new home sales.

Whats Ahead

Next week’s scheduled economic news includes Case-Shiller Home Price Index reports, pending home sales and weekly readings on mortgage rates and new jobless claims. U.S. Financial markets are closed today in observance of the Christmas holiday.

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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!

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