What’s Ahead For Mortgage Rates This Week – June 27, 2016

Whats Ahead For Mortgage Rates This Week May 18 2015Last week’s economic news was dominated by Great Britain’s vote to withdraw from the European Union. New and Existing Home Sales were released along with weekly reports on mortgage rates and new jobless claims.

“Brexit” Vote Tanks Stocks, Could Cause Lower Mortgage Rates

US stocks plunged in reaction to the news of Britain’s decision to leave the EU and the resignation of its Prime Minister. While investors don’t want to see their 401(k) values crash, mortgage rates may also fall as a result of “Brexit”. Fallout caused by economic uncertainty connected with Great Britain’s move to regain independence is expected to have lingering influence on global financial and economic developments in coming months and years.

Fed Chair Janet Yellen said in testimony before the Senate Banking Committee that Great Britain’s decision to leave the EU could have significant consequences. Chair Yellen’s comments were made prior to Friday’s announcement of Great Britain’s decision.

Existing Home Sales Highest Since 2007, Home Prices Continue Rising

According to the National Association of Realtors® May sales of pre-owned homes hit their highest level since February 2007. May’s seasonally-adjusted annual reading of 5.53 million sales fell just shy of analysts ‘expectation of 5.55 million sales, but exceeded April’s reading of 5.43 million sales. May’s reading represented a 1.80 percent increase in sales and a year-over-year increase of 4.50 percent.

Short supplies of available homes continued to drive up home prices according to NAR chief economist Lawrence Yun, who expressed concerns about affordability as home prices continued to outstrip wages and inflation. The national median home price was $239,700 in May, which was 4.70 percent higher year-over-year. Although first-time buyers typically represent about 40 percent of homebuyers, they currently account for 30 percent of homebuyers.

New Home Sales Fall in May

Sales of new homes slowed in May after jumping in April. According to the Commerce Department, sales of new homes fell by 6.00 percent on a seasonally adjusted annual basis. 551,000 new homes were sold against the expected reading of 560,000 new homes sold and April’s downwardly revised reading of 586,000 new homes sold. New home sales were 8.70 percent higher year-over-year in May.

Mortgage Rates Rise, Weekly Jobless Claims Fall

Last week’s mortgage rates don’t reflect the Brexit decision and rose slightly on Thursday. The average rate for a 30-year fixed rate mortgage was two basis points higher at 3.56 percent; the average rate for a 15.year fixed rate mortgage was also two basis points higher at 2.83 percent. The average rate for a 5/1 adjustable rate mortgage was unchanged at 2.74 percent. Discount points rose to 0.60 percent for a 30-year fixed rate mortgage but were unchanged at 0.50 percent for 15-year fixed rate mortgages and 5/1 adjustable rate mortgages.

What’s Ahead

Next week’s economic events include Case-Shiller Housing Market Indices, Pending Home Sales, Consumer Spending and Construction Spending

3660 E Montecito Avenue Phoenix, AZ 85018

$449,000
2 Beds
2 Baths
1,289 SqFt
Status Active
MLS # 6614597
Property Type Townhouse
Price Type --
GORGEOUS REMODEL! Nestled in the popular Arcadia Villa Rey! This lovely home features BRAND NEW LVP flooring throughout, NEW top to bottom paint and a completely remodeled kitchen boasting wood cabinets, waterfall quartz counters , BRAND NEW stainless steel appliances and an open breakfast bar! Continue to the main suite, showcasing a beautiful remodeled en-suite, walk-in closet, & a separate outdoor access. ! Located in the very desirable Arcadia area. This gem will not last long!

2302 N Central Avenue Phoenix, AZ 85004

$449,000
2 Beds
2 Baths
1,277 SqFt
Status Active
MLS # 6599361
Property Type Apartment
Price Type --
WOW! Simply-stunning complete REMODEL of gorgeous condo in historic Willo District with amazing views of downtown and the Valley! Spacious split-floorpan 2 bedrooms/2 baths + Den/Office. Bright, open all-new kitchen with beautiful cabinets, quartz countertops, and stainless-steel appliances including gas cooktop. Contemporary styling throughout with popular flooring and fixtures. Dramatic bathroom remodels for both bathrooms. Private patio with panoramic views of the Valley! High-end complex with 2 parking spots in underground garage, gated entrances, heated lap pool, fitness room, and more! Light rail station literally out the front door. Lots of restaurants, shops, and extremely close to the Heard & Phoenix Art Museums.This remodeled gem will give you the lifestyle you want!

5900 E Hickory Court Hereford, AZ 85615

$449,000
3 Beds
2 Baths
2,389 SqFt
Status Active
MLS # 6621675
Property Type Single Family Residence
Price Type --
Stunning views will take your breath away. Located in the gated community of Three Canyons. This beautiful home sits on a 1-acre lot, with almost 2400sqft of spacious living. There are 3 generous sized bedrooms plus a separate office with double doors off the foyer entrance. 2 baths; master offers a garden tub & walk-in shower. Great room with adorable built-in shelves, family room, & large kitchen w/stainless steel appliances. Oversized laundry w/cabinetry, countertop & closet. 3-car garage w/built-in shelving, workbench & water softener. Step out back through French doors to a large covered porch & extended patio. Fully fenced block wall w/RV & pedestrian gates. Incredible views of the majestic Huachuca Mountains. High Speed Internet is included in the annual HOA assessment.

12926 W Beechwood Drive Sun City West, AZ 85375

$449,000
3 Beds
2 Baths
2,454 SqFt
Status Active
MLS # 6635070
Property Type Single Family Residence
Price Type --
Don't miss this desirable Castillo model now on the market. This 3-bedroom, 2 bath split bedroom floor plan has a great deal to offer. Laundry has been moved in from garage adding square footage and an office/craft area. No popcorn ceilings and no carpet in this house! There's plenty of outdoor living space with the front courtyard and the back covered patio. Back yard provides exercise & relaxation in one with its ''Endless Pool'' & Hot Tub combination! Located in the heart of Sun City West, this home is close to shopping, restaurants, golf and Rec Centers! Own this great home and begin enjoying all the amenities of Sun City West!