What’s Ahead For Mortgage Rates This Week – May 23, 2016

You Ask, We Answer: 5 Ways That You Can Proactively Build and Improve Your Credit ScoreLast week’s economic news included the NAHB Housing Market Index, reports on housing starts, building reports and existing home sales. Minutes of the Federal Reserve’s last FOMC meeting were also released.

Homebuilder Confidence Unchanged, Housing Starts and Building Permits Increase

The National Association of Home Builders (NAHB) reported that builder confidence held steady with a reading of 58 in May. Analysts projected a reading of 58 and April’s reading was also 58. Builder confidence in market conditions could be slowing due to concerns over acquiring skilled labor and a shortage of developed lots. Demand for homes remains high, but a slim inventory of available properties and builder emphasis on higher-priced homes contributed to sidelining moderate income and first-time buyers.

Commerce Department reports for April Housing Starts and Building Permits issued suggest that tight housing inventories may receive some relief. April housing starts rose from a revised March reading of 1.099 million to 1.170 million starts. Housing starts increased by 6.60 percent in April. Housing starts have slowed as compared to the year-over-year period from April 2015 to 2016; housing starts increased by 10 percent for the same year-over-year period in 2015. While any increase in home construction is welcome, some analysts said that they did not expect a huge increase in home construction in coming months.

Construction of multifamily housing units rose by 10.70 percent, while single-family home construction increased by 3.30 percent. Rising rents and millennials delaying home purchases were seen as fueling multifamily home construction. As homes become less affordable, would-be buyers are continuing to rent, which places higher demand on rental units.

Pre-owned Home Sales Rise in April

Sales of previously owned homes rose by 1.70 percent in April to a seasonally-adjusted annual rate of 5.45 million sales. Sales increased by 12.10 percent in the Midwest, where homes are most affordable, and fell by 1.70 percent in the West, where homes are most costly. This development suggests that rapidly rising home prices have or will soon reach maximum levels in high-cost areas. Home prices in many areas rose rapidly in preceding months as short inventory and high demand created bidding wars and keen competition for available homes. A lack of affordable single family homes has caused some buyers to buy condos while others have put buying on hold.

Mortgage Rates Rise, New Jobless Claims Fall

Mortgage rates rose for 30-year fixed rate mortgages rose by one basis point to 3.58 percent; the average rate for a 15-year fixed rate mortgage was unchanged at 2.82 percent and the average rate for a 5/1 adjustable rate mortgage rose by two basis points to 2.80 percent. Discount points were 0.60, 0.50 and 0.50 percent respectively. Analysts are watching the Fed closely for any indication that it will raise the target federal funds rate in June, although concerns over the possibility of Great Britain leaving the European Union could cause the Fed to hold off on raising the rate. If the Fed raises the target federal funds rate, loan rates for credit cards and mortgages would also increase.

New jobless claims fell last week to 278,000 new claims against expectations of 279,000 new claims and the prior week’s reading of 294,000 new claims. Analysts said that a telecommunications strike caused the prior week’s raise in claims as striking workers who are replaced during a strike are eligible for jobless benefits.

What’s Ahead

This week’s scheduled economic releases include new and pending home sales along with weekly reports on mortgage rates and new jobless claims.

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21053 N 110th Way Scottsdale, AZ 85255

$27,500,000
6 Beds
8.5 Baths
15,000 SqFt
Status Active
MLS # 6142312
Property Type Single Family - Detached
Price Type --
Never before listed, this magnificent private estate awaits a most discerning owner! Situated behind its own private gates on 4.7 acres within the guard-gated Upper Canyon of Silverleaf. This extraordinary 15,000+ sq ft. architecturally designed by visionary Dale Gardon & built by award winning Salcito Custom Homes offers French limestone & French Oak flooring throughout. Sophisticated bathrooms feature heated flooring & steam showers. Fantastic fully equipped guest house includes washer / dryer, dual custom walk-in closets & private outdoor oasis. Large gym & 6 car airconditioned garage bays. Spectacular outdoor spaces cater to every whim; deep diving pool, spa, firepit, kitchen, multiple sitting areas w/ fireplaces & ceiling heaters guarantee stunning Arizona living & entertaining!!

27780 W Ox Ranch Road Congress, AZ 85332

$25,000,000
5 Beds
4 Baths
2,328 SqFt
Status Active
MLS # 6016821
Property Type Single Family - Detached
Price Type --
The O.X. - Little Horse Ranch is an approximately 95,000 +/- acre ranching operation including the 65,620 +/- acre O.X. farm and ranch including 2,292+/- deeded acres located in the high Sonoran Desert 15 miles North of Wickenburg, AZ and the 29,072 +/- acre Little Horse Ranch located in the pine-covered country along the I-17 freeway beginning 3 miles south of Flagstaff, AZ. The 140-year old O.X. Ranch, which is regarded by many as the finest desert ranch in the Southwest, extends from the town of Congress, AZ, at a 3,000 ft. elevation, to the pine-covered peaks of the Weaver Mountains at almost 6,000 feet. The three perennial streams that converge at the headquarters, together with a spring that produces several hundred gallons of water per minute, a 30ft. water table, and a 13 ACRE LAKE

7620 N Red Ledge Drive Paradise Valley, AZ 85253

$20,000,000
9 Beds
14 Baths
18,000 SqFt
Status Active
MLS # 6097421
Property Type Single Family - Detached
Price Type --
EXTRAORDINARY CONTEMPORARY MASTERPIECE BY CP Drewett! UNPARALLELED VIEWS, PRIVACY, AND LOCATION! This spectacular, fully customizable, contemporary build-to-suit home, perfectly situated on a 16.4 acre mountain top Paradise Valley estate lot, presents the most discriminating individual an opportunity to have it all. Located within a guard-gated community, and behind its own private gate, the privileged owner of this extraordinary home will possess a unique level of privacy and seclusion rarely found, especially when considering the area's best fine dining, shopping, and entertainment are within 15 minutes drive, and both the Phoenix Sky Harbor International and Scottsdale Airports are only 20 minutes away. This remarkable property offers two breathtaking building pads. Must Watch Videos

15860 E Rio Verde Drive Scottsdale, AZ 85262

$19,500,000
4 Beds
8 Baths
8,744 SqFt
Status Active
MLS # 6106214
Property Type Single Family - Detached
Price Type --
A coveted Modern West lifestyle awaits in the glorious Sonoran Desert at MorDo Ranch. Located just minutes from all the amenities Scottsdale has to offer, this 19-acre horse ranch offers both luxury home living along with superb horse facilities. The main residence, designed after an Argentinian Estancia, displays Kitchell commercial building expertise tailored to a magnificent and welcoming estate home, with open floor plan, private his and her offices, two separate guest suites and intimate entertaining areas. Among the estate grounds are a 10-stall barn, two corrals, and four 5-acre pastures. Closer to the main residence are two managers homes, greenhouse and both pool and tennis court.

10719 E Rimrock Drive Scottsdale, AZ 85255

$18,750,000
6 Beds
8 Baths
13,111 SqFt
Status Active
MLS # 6144446
Property Type Single Family - Detached
Price Type --
Backdropped by the magnificent McDowell Mountains, this incredible Silverleaf estate boasts dramatic views of the vibrant golf course and the twinkling city lights of the Valley below. Designed and built for the most discerning, the home features qualities authentic to a timeless California-style estate with a private gated entrance leading to an extended driveway and grand motor court. Impeccable attention to detail, the finest materials and unparalleled craftsmanship were executed perfectly throughout. Strategically placed on a 9-acre signature homesite is the 13,111 square foot, 6-ensuite bedrooms, 8 bath, timeless home with a detached 1,789 square foot, two-bedroom guest home. This was the first home built in Silverleaf to achieve LEED certification for energy efficiency.

41927 N Saguaro Forest Drive Scottsdale, AZ 85262

$16,500,000
5 Beds
5.5 Baths
9,860 SqFt
Status Active
MLS # 6012791
Property Type Single Family - Detached
Price Type --
The Bacon House at Desert Mountain is a stunning classically modern 9,860 square foot home, designed by Master of the Southwest Architectural Designer Bob Bacon. This south-facing, five-bedroom, open plan home and gallery will be built in Desert Mountain, a secure, gated, private club and recreation-oriented master planned community in Scottsdale, Arizona. The capstone of a storied career, Bacon has created a true masterpiece of livable architectural art destined to be one of the finest homes anywhere; replete with the most advanced technology (including being solar powered) and 5,550 SF of climate-controlled collector's galleries for the safe display of prized possessions such as automobiles, art, or sculpture. A Bacon curated collection of furnishings is also available separately.

5335 N Invergordon Road Paradise Valley, AZ 85253

$14,990,000
6 Beds
13 Baths
25,851 SqFt
Status Active W/contingency
MLS # 5892742
Property Type Single Family - Detached
Price Type --
This fabulous gated 25,000 sq ft. estate built in 2013 has views of Camelback Mountain overlooking a beautiful terraced cascading pool + grounds. The residence has exquisite mahogany ceilings and cabinetry, 6 automated pocket doors to the outside, a 2 story high living rm, 2 bedrm master suite w sitting rm 2 master baths + 2 closets. There is a gourmet kitchen w 2 large center islands and marble floors opening to a 1,750 sq ft family rm, an extraordinary two-story library, a 12 seat theatre, wine rm, a lounge bar, 2 offices, an exercise rm with glass steam rm + sauna + an attached guest home.The main rooms: kitchen, master suites, office and library are on the main floor. This home was built to commercial standards. There is also a 25 person elevator, add'l elevator + shooting range.

10944 E Whistling Wind Way Scottsdale, AZ 85255

$14,950,000
7 Beds
9.5 Baths
11,794 SqFt
Status Active
MLS # 6175522
Property Type Single Family - Detached
Price Type --
Renowned architect Bing Hu has created another masterpiece in the Upper Canyon of the prestigious and highly acclaimed Silverleaf community. This 11,794 SF estate is a modern adaptation of the Prairie style of architecture, perfectly situated sitting on the high foothills of the McDowell Mtns with panoramic city lights, mountain and valley views. The superb quality of the finishes and the amenities included are sure to please the most discerning: 5 ground floor bedrooms and 2 bedroom guest house, 11 car garage, spacious gym, sport court and pickleball court, media room and separate golf simulator room, large negative edge pool, spa and lounging pool - Certainly everything you'd expect in a home of this stature.

6659 E Indian Bend Road Paradise Valley, AZ 85253

$13,000,000 - 8Br/16Ba - Home for Sale in Judson, Paradise Valley
New
$13,000,000
8 Beds
16 Baths
26,393 SqFt
Status Active
MLS # 6174692
Property Type Single Family - Detached
Price Type --
Infrequent discovery, 2021 New! This Ultimate Guard Gated Estate assures security and privacy. Homes commercial (concrete and steel) grade construction is under way and can be personalized to your taste if you act now! The home can accommodate parking for 20 of your most special car collection or use this space as your ball room/event center. Its generous size, bank grade vault can store your Art, Jewelry or garments. In your spare time, you may find your self lounging by its front courtyard's reflecting pool, its back yard's pool or your indoor pool/spa area. Your wine tasting room can be within the wine cellar or intimately outside on it. The gaming range room can accommodate bowling lanes, batting or shooting games. The home offers a theater, exercise, hair salon, steam and sauna rooms.

5021 E Arabian Way Paradise Valley, AZ 85253

$12,950,000
6 Beds
9 Baths
16,083 SqFt
Status Active
MLS # 5826956
Property Type Single Family - Detached
Price Type --
Timeless Classic Elegant Masterpiece! Surround yourself in complete tranquility and luxury on almost 5 spectacular acres enveloped by mountains, lush grounds and magnificent gardens. This prestigious residence has been masterfully remodeled to be one of the finest estates in Paradise Valley. With over 16,000 square feet comprising 6 bedrooms and 9 bathrooms, this exquisite home boasts a stunning grand entrance, soaring uniquely decorated ceilings, large scale rooms with finest architectural features including sophisticated finishes throughout with details sourced the world over and a floorplan that is formal, yet creates a comfortable and inviting ambience. Other luxury amenities include; formal living and dining rooms, family style great room and open chef's kitchen,

5950 E Valley Vista Lane Paradise Valley, AZ 85253

$12,750,000
7 Beds
10 Baths
12,295 SqFt
Status Active
MLS # 6151640
Property Type Single Family - Detached
Price Type --
With state-of-the-art 2019 renovations and upgrades by John Schultz, a beautifully re-envisioned and chic interior by Donna Vallone, and pristine landscaping by Berghoff Design, this 2 1/4 ACRE Very Private Estate exudes cool sophistication and boasts stunning FULL CAMELBACK MTN VIEWS! Multiple French doors frame Camelback Mtn and open to the HUGE Backyard with expansive green lawns, a fully tiled pool, cabana, sport court, putting green, private jogging path + flower gardens. Highlights include 16-Ft ceilings, a FULL 2BDRM GUEST HOME, SEPARATE EXERCISE BLDG (or 2nd guest house), 2 family rms, White Designer Chef's Kitchen, an elegant 2 story library, white Carrara marble bathrms, 2 huge outdoor entertainment patios, + groin vaulted ceiling in hallways. Upgrades include New Cabinetry,

6000 E Cameldale Way Paradise Valley, AZ 85253

$12,500,000
6 Beds
8 Baths
11,878 SqFt
Status Active
MLS # 6172920
Property Type Single Family - Detached
Price Type --
This idyllic Spanish Colonial Revival Estate sits on one of the best view lots in Cameldale. From northern mountain ranges to Four Peaks and beyond, an evening on the patio will take your breath away! Casually elegant and fastidiously maintained, this easy and generous floor plan offers a grand entry into an attractive living room with striking 16' ceiling detailed with rich beams and flowing into one of the most charming dining rooms ever to entertain your guests. All of the high 14-16' ceilings throughout reveal eye-catching designs, each different and impressive. A wood paneled library sits just off the foyer enriched with beautifully crafted millwork and high arching windows to take in the view of Camelback Mountain. The inviting family room is warmed with fireplace and bar service...