Last week’s economic reports included readings on new and existing home sales, a speech by Fed Chair Janet Yellen, and a report on consumer sentiment. Weekly reports on mortgage rates and new jobless claims were also released.
New Home Sales Rise in July as Pre-Owned Home Sales Fall
Sales of new homes jumped in July to a seasonally-adjusted annual rate of 654,000 sales, which surpassed expectations of 579,000 sales and June’s downwardly-revised reading of 582,000 sales. This was the highest reading for new home sales since 2008 and represented a 31.30 percent increase since July 2015.
Builders were seen by analysts as addressing the need for more affordable homes; this trend contributes to a healthy housing market by supplying homes for a wider range of buyers. First-time buyers play a vital part in housing markets as their purchases enable current homeowners to buy larger homes or relocate.
Sales of pre-owned homes fell 3.20 percent to a seasonally-adjusted annual rate of 5.39 million sales as compared to expectations of 5.59 million sales and June’s reading of 5.57 million sales. Year-over-year, sales were 1.60 percent lower. Limited inventories of available pre-owned homes have narrowed buyer options; increasing prices and narrow choices were seen as factors contributing to lower sales. There was a 4.60 month supply of available homes in July. Real estate pros typically consider a six months a normal reading for homes on the market.
Lawrence Yun, chief economist for the National Association of Realtors®, noted that a slowdown in home appraisals may have contributed to July’s lower sales reading for pre-owned homes. Low mortgage rates prompted a surge in refinancing which created a backlog in home appraisals. While low mortgage rates may entice home buyers, stricter mortgage requirements can also keep prospective buyers at bay.
Federal Reserve Chair Janet Yellen indicated that the stage could be set for a federal rate increase as early as next month. If the Fed hikes its target federal funds rate, interest rates for consumer credit and mortgages can be expected to rise.
Mortgage Rates Hold Steady; New Jobless Claims Fall
Freddie Mac reported that fixed mortgage rates for 30 and 15-year loans were unchanged at 3.43 and 2.74 percent respectively. The average rate for a 5/1 adjustable-rate mortgage was one basis point lower at 2.75 percent. Discount points averaged 0.60, 0.50 and 0.40 percent.
New jobless claims were lower last week. 261,000 new jobless claims were filed against expectations of 264,000 new claims and the prior week’s reading of 262,000 new claims filed. Declining jobless claims can indicate strengthening labor markets, but can also indicate that workers are leaving the labor markets.
Consumer sentiment declined slightly in August due to concerns over the upcoming presidential election. Analysts expected a reading of 91.0 for August, but the reading for August was revised from 90.4 to 89.80.
What’s Ahead
Next week’s scheduled economic news includes reports on pending home sales, inflation, construction spending and consumer confidence. National unemployment, non-farm payrolls and ADP payrolls are also scheduled.
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4164 W Nora Drive
San Tan Valley, AZ 85144
$503,135
3
Beds
2
Baths
2,232
SqFt
Status
Active
MLS #
6688576
Property Type
Single Family Residence
Price Type
--
Beautiful 3 bedroom plus flex room with European kitchen layout, stainless steel appliances. Tile throughout except bedrooms, white cabinets granite counter tops.
25635 N 185th Drive
Surprise, AZ 85387
$502,995
3
Beds
2
Baths
1,690
SqFt
Status
Active
MLS #
6672296
Property Type
Single Family Residence
Price Type
--
Explore this elegant Bronze home, ready for Summer move-in! Included features: a generous great room with center-meet doors leading onto an inviting covered patio; a dining area; an impressive kitchen showcasing 42'' cabinets, quartz countertops, a center island, a walk-in pantry and stainless-steel appliances, including a gas range; two secondary bedrooms with a shared bath; and a lavish primary suite boasting an oversized walk-in closet and a private bath with double sinks. This home also offers 6'' x 35'' stone tile flooring, cultured marble bathroom countertops, ceiling fan prewiring, front yard landscaping and a concrete-paver driveway and walkway
16802 W Desert Mirage Drive
Surprise, AZ 85388
$502,935
4
Beds
3
Baths
2,358
SqFt
Status
Active
MLS #
6702505
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#6702505 September Completion! The Paisley at Paradisi Discovery offers a two-story layout spanning 2,358 square feet, complete with 4 beds, 3 baths, a 2-car garage, and a loft. This stunning home features a first-floor bedroom, ensuring privacy and convenience for guests. The expansive open gathering room, casual dining, and kitchen area with quartz countertops create a spacious environment, complemented by an adjacent outdoor living area for seamless indoor/outdoor living. Upstairs, the loft provides versatility as a play area, study, or secondary living space. The owner's suite boasts a walk-in closet and double sinks, adding a touch of luxury.
27079 N 167th Drive
Surprise, AZ 85387
$502,801
5
Beds
4
Baths
2,531
SqFt
Status
Active
MLS #
6699666
Property Type
Single Family Residence
Price Type
--
Can't find what you want on the resale market, look no further. This spacious 5 bedroom, 4 bathroom home, featuring an office space, open concept living and dinning room area with beautiful site line views backing the Sonora desert !! If your looking for a tech equipped, spacious, beautifully finished single story home offering 2 non primary rooms that have en suites and a work space this is the home for you !!
647 S Del Rancho Circle
Mesa, AZ 85208
$502,797
4
Beds
2.5
Baths
2,012
SqFt
Status
Active
MLS #
6603339
Property Type
Single Family Residence
Price Type
--
$17,000 in Builder Incentives (must use Preferred Lender) for a buyer to use on this NOW COMPLETED inventory home!! This 4 bedroom, 2.5 bath with a LOFT home is almost done! White Shaker Cabinets, Beautiful 12X24 Tile Floor on entire first floor, Granite Counters and a 2 car garage. One of the larger lots in the 18 home community AND it has the double extended covered patio! Diamond Court, built by Newmark Homes, is an 18 home community nestled in a prime location in Mesa with lots of new retail/restaurants close by!
16861 W Fetlock Trail
Surprise, AZ 85387
$502,396
4
Beds
3
Baths
2,644
SqFt
Status
Active
MLS #
6700364
Property Type
Single Family Residence
Price Type
--
Can't find what you want on the resale market, look no further. This 4 bed, 3 bath home features a 3 car garage split, loft space, 1 bedroom and bathroom downstairs, a beautiful gourmet kitchen, a study with double doors, perfect for an office and or work space ! And huge backyard ! This house is ready to become your HOME !
207 S Beaver Street
Flagstaff, AZ 86001
$502,260
1
Bed
1
Bath
800
SqFt
Status
Active
MLS #
6632520
Property Type
Apartment
Price Type
--
DON'T MISS THIS OPPORTUNITY! This 1-Bedroom Condo has a covered patio's, and is Move-in-ready! This 5-story community was tastefully designed to accentuate the views off each deck of the 32 luxury units! Living the high life at 7000' feet is a breeze at The Views at Butler, just a step from Northern Arizona University & the nightlife in downtown. Watch the sunset reflect off the San Francisco Peaks while BBQ'ing on the oversized Roof-Top View Deck & lounge area. Convenience & ease are built into the community w key fob elevator, a trash shoot on every level & standard A/C. Beyond the aesthetic & downtown life vibe! Location, Convenience, Views & Community. It's the perfect home for you!
17332 W Corrine Drive
Surprise, AZ 85388
$501,990
4
Beds
3
Baths
2,280
SqFt
Status
Active
MLS #
6687543
Property Type
Single Family Residence
Price Type
--
SELLER IS OFFERING CLOSING COST AND RATE BUYDOWN SPECIALS. This home is on a very deep lot! It is 4 bedrooms, 3 baths plus a loft and a 2-car garage on a large lot. The guest suite is located on the bottom floor and 3 bedrooms plus a loft on the second floor. This home has a beautiful kitchen with an island, Staggered upgraded cabinets, Upper-level Quartz countertops and stainless-steel appliances. The kitchen opens up perfectly to the great room and the covered patio. Master suite has a large bedroom, tiled master shower, large walk in closet and double sinks. All interior doors are 8'!
16745 W Cortez Street
Surprise, AZ 85388
$501,251
4
Beds
3
Baths
2,140
SqFt
Status
Active
MLS #
6473905
Property Type
Single Family Residence
Price Type
--
Up to 3% of total purchase price towards closing costs incentive offer. Additional eligibility and limited time restrictions apply. MLS#6473905 December Completion! The Sterling offers a single-story design encompassing 2,140 sq. ft., 4 bedrooms, 3 bathrooms, and a 3-car tandem garage. Upon entering through the foyer, you encounter a seamless blend of an open-concept kitchen, casual dining, and gathering room—a perfect setting for entertaining. The outdoor living space enhances the overall livability, allowing you to relish the Arizona sunshine throughout the year. Structural options include: Additional bedroom, study, 8' Interior Doors, Garage Service Door.
1653 Middle Creek Lane
Sierra Vista, AZ 85635
$501,051
3
Beds
2
Baths
1,804
SqFt
Status
Active
MLS #
6614413
Property Type
Single Family Residence
Price Type
--
New In-Town Community! 1804 sf, 3br/2ba home with 3-car garage on over 1/4 acre in-town lot and walking distance to stores & schools. Kitchen features Off-White painted cabinets with hardware and granite countertops throughout with under cabinet lighting, pendant lights over peninsula island. Bathrooms feature executive height cabinets, tile shower and bath surrounds. Wood look tile throughout with upgraded carpet and pad in the bedrooms. Primary suite has large walk-in closet and double sinks. Pre-wires and bracing for ceiling fans & wall mount tv, plumbed for soft water with fridge/freezer outlet in garage. Front yard irrigation with timer, wide rear patio with gas stub for future outside cooking. Energy Star Certified, HERS Rated & Environments for Living Guaranteed Home.
12206 W Levi Drive
Avondale, AZ 85323
$500,813
5
Beds
3
Baths
2,648
SqFt
Status
Active
MLS #
6703068
Property Type
Single Family Residence
Price Type
--
*Agents, please read private remarks* Wonderful new Shea Home in the popular Master Planned Community known as Alamar. This beautiful home features 4 bedrooms, 3 bathrooms and an upstairs laundry room. Upgraded features include Quartz Countertops, Urban White Cabinets, Stainless Steel GAS Appliances, Designer Flooring, Garage Service Door and Front Yard Landscaping. Estimated completion is 30-45 days.
16241 W Soft Wind Drive
Surprise, AZ 85387
$500,072
3
Beds
3
Baths
2,501
SqFt
Status
Active
MLS #
6620815
Property Type
Single Family Residence
Price Type
--
MOVE IN READY. Beautiful ESCALANTE Community, SILVERSMITH Plan, 3 bedroom, Open Study, 3 Baths, 2 Car Garage, 9 Foot Ceilings On Both Floors, 8 Foot Interior Doors, Gourmet Kitchen, UPGRADED FLOORING, CABINETS And COUNTERTOPS, 2 Inch Pearl White Blinds, Ceiling Fans In All Rooms. Energy Star Qualified Home, Indoor Air Plus, Buyer May Still Select Appliances, 8 Foot Tall Garage Door, Located A Short Distance From The Community Pool Area, Picnic Area, Tot Lots, Basketball, Pickle Ball Courts And So Much More. This Home Is MOVE IN READY, $1,750 Front Landscape Credit, Schools And New Shopping Center Nearby. Full Builder Warranty. QUICK CLOSE.
