What’s Ahead For Mortgage Rates This Week – January 2, 2017

Last week’s economic reports were in short supply due to the Christmas holiday. Events reported included Case-Shiller home price indices, pending home sales and weekly readings on mortgage rates and new jobless claims. Consumer confidence was also released.

CaseShiller Readings Indicate No Slowdown in Home Price Gains

Case-Shiller’s October readings for its home price indices showed continued growth in home prices. In spite of rising home prices and mortgage rates, high demand for homes and slim supplies of homes for sale continued to fuel higher home prices.

According to Case-Shiller’s national home price index for October, home prices rose 5.60 percent on an annual basis as compared to September’s reading of 5.40 percent. The 20-city home price index rose to 5.10 percent from September’s reading of 5.00 percent. Case-Shiller’s 10-city index also gained 0.10 percent in October with a reading of 4.30 percent year-over-year.

Seattle, Washington, Portland, Oregon and Denver, Colorado had the highest year-over-year home price gains in October with readings of 10.70, 10.30 and 8.30 percent respectively. David M. Blitzer, Managing Director and Chairman of the S&P Indices Committee, said that “Home prices and the economy are both enjoying robust numbers,” but he also cautioned that rising mortgage rates and home prices growing faster than wages continue to pose obstacles for some home buyers. The Federal Reserve is expected to raise its federal funds rate in 2017, which is expected to prompt rising mortgage rates.

Mortgage Rates Mixed, Pending Home Sales Fall

Pending home sales fell 2.50 percent in November. Analysts said that post-election reaction helped to drive mortgage rates higher, which made homes less affordable for first-time and moderate-income buyers; Sellers and buyers may have postponed decisions to sell or buy as they waited for volatile post-election responses to ease.

According to the National Association of Realtors®, pending home sales fell to their lowest level in almost a year with an index reading of 107.30 in November. September’s reading was 110.00. The holiday season and rising mortgage rates were seen as contributing to fewer pending home sales.

Freddie Mac reported the ninth consecutive week that fixed rate mortgages rose. In the final mortgage rates survey for 2016, the average rate for a 30-year mortgage rose two basis points to 4.32 percent; the average rate for a 15-year fixed rate mortgage was three basis points higher at 3.55 percent. 5/1 adjustable rate mortgage rates averaged 3.30 percent, which was two basis points lower than the prior week. Discount points averaged 0.50 percent for all three mortgage types.

New jobless claims were lower last week with a reading of 265,000 new claims filed. Analysts had expected 270,000 new claims filed based on the prior week’s reading of 275,000 new claims filed.

In spite of rising home prices and mortgage rates, consumer sentiment was higher than expected in December with a reading of 113.70 as compared to expectations of 110.00 and November’s reading of 109.40.

Whats Ahead

Next week’s scheduled economic reports include Labor Department releases on Non-Farm Payrolls, and the national unemployment rate. ADP payrolls and weekly readings on mortgage rates and new jobless claims will also be released. Financial markets are closed today in observance of New Year’s Day.

Click Here to See What Your Home is Worth

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

25496 N 160 Lane Surprise, AZ 85387

$447,590
4 Beds
3 Baths
2,049 SqFt
Status Active
MLS # 6669086
Property Type Single Family Residence
Price Type --
Brand new, energy-efficient home ready NOW! Large great room and dining space. The kids can create their own play space in the included flex space. White cabinets with quartz countertop and grey tile flooring in our Balanced package. Come tour our five brand-new models at Paloma Creek. Envision your next chapter by experiencing the exclusive amenities including a clubhouse, pool, and future fitness center. Pick from a variety of floorplans featuring walk-in closets and flex spaces. Each energy-efficient home comes standard with features that allow your whole family to live better and breathe easier too.* Visit Paloma Creek today. Each of our homes is built with innovative, energy-efficient features designed to help you enjoy more savings, better health, real comfort and peace of mind.

41585 W Coyote Run Maricopa, AZ 85138

$447,590
5 Beds
3 Baths
2,552 SqFt
Status Active
MLS # 6635222
Property Type Single Family Residence
Price Type --
Brand new, energy-efficient home available NOW! Each of the five bedrooms in this floorplan features a spacious walk-in closet. White cabinets and granite countertops, tile flooring with brown carpet in our Distinct package. Enjoy 3-car and RV garages at Copper Ridge located in Maricopa. Your family will enjoy Maricopa's small town feel and local hubs. Plus, all the resources of metro Phoenix are only a short drive away. We also build each home with innovative, energy-efficient features that cut down on utility bills so you can afford to do more living.* Visit Copper Ridge today. Each of our homes is built with innovative, energy-efficient features designed to help you enjoy more savings, better health, real comfort and peace of mind.

2332 W Monte Cristo Avenue Phoenix, AZ 85023

$447,500
4 Beds
2 Baths
1,457 SqFt
Status Active
MLS # 6671871
Property Type Single Family Residence
Price Type --
Newly remodeled home at 2332 W Monte Cristo, Phoenix, AZ, features 4 bedrooms, 2-car garage, and 2 living rooms. Modern upgrades offer style and convenience in a spacious layout. Located in a vibrant Phoenix area, known for excellent schools, shopping, dining, and leisure activities, this property combines comfort with the benefits of city living. Ideal for those seeking a turnkey home in a thriving community.

Leave a Reply

Your email address will not be published.