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.

20568 N 112th Street Scottsdale, AZ 85255

$32,000,000
7 Beds
10 Baths
17,267 SqFt
Status Active
MLS # 6413286
Property Type Single Family - Detached
Price Type --
A Dream Team Comes Together Like a Symphony to Create a Custom Estate That is a Work of Art, introducing Ellington Heights in Silverleaf''There is no art when one does something without intention.'' -- Duke Ellington.Without a doubt the King of Jazz would consider Ellington Heights--a sleek and stylish gem--a superb work of art. Nestled in the sun-kissed upper canyon of Silverleaf, an exclusive enclave in Scottsdale, Arizona, the design for this magnificent estate collected inspiration from the social, artistic and cultural dynamism of the Roaring Twenties era. Further, the design journey for this modern desert prairie-style home, included finding perfect harmony with its Sonoran surroundings.(see 'more' now)

7265 N 40th Street Paradise Valley, AZ 85253

$30,600,000
5 Beds
7 Baths
18,000 SqFt
Status Active
MLS # 6346005
Property Type Single Family - Detached
Price Type --
Amethyst is the crown jewel of Crown Canyon situated above all other homesites. This 5 acre parcel awaits an architectural masterpiece to capture the most prolific views in the community. The experienced team at BedBrock Developers is prepared to fully design and build your custom dream home on this impressive mountain hillside. In-house architect Stratton Andrews has designed an 18,000 square foot showcase home custom to this lot demonstrating the endless possibilities within this homesite.''The breathtaking Amethyst homesite itself ignited the inspiration for this architectural masterpiece. The design flows with the topography allowing 270 degree views of the valley, Camelback Mountain and Piestewa Peak, while immersing the homeowner in the natural beauty of the desert'' says the

5247 N Invergordon Road Paradise Valley, AZ 85253

$30,000,000
7 Beds
13 Baths
13,364 SqFt
Status Active
MLS # 6447698
Property Type Single Family - Detached
Price Type --
Introducing ''The Royal Chateau'', an exquisitely remodeled estate (completed May 2022)! Boasting 7 bedrooms, 13 bathrooms with sweeping views of Camelback Mountain, this home is sure to please with only the highest level of finishes. The main residence offers nearly 10,000 sf of luxury interior living with 2 separate guest houses. This custom residence includes a custom 600 Bottle Wine Cellar, 7 Car Garages w/ AC, Chef's Kitchen w/ Dual Sinks, custom built-in Subzero Fridge & Freezer, and large walk-in pantry with appliances. Featuring a state-of-the-art home theater, home office with views of Camelback, parlor with wet bar & custom woodwork throughout the entire home. Guests may stay in either of the 2 guest casitas and enjoy the several outdoor entertaining areas throughout the property

20958 N 112th Street Scottsdale, AZ 85255

$28,000,000
7 Beds
8 Baths
13,617 SqFt
Status Active
MLS # 6375239
Property Type Single Family - Detached
Price Type --
Welcome to ''The Aerie'', perched high in the McDowell Mountains in Scottdale's most exclusive community of Silverleaf sits this one of a kind masterpiece with unmatched views of the valley below. Thoughtfully designed by Erik Peterson of PHX Architecture and built with the ultimate in perfection by Paragon Custom Homes into a true work of art, this brand new desert contemporary home is an amazing estate. From the open great room which leads to the designer kitchen and hidden catering kitchen to the thoughtfully designed entertainment zone, and the palatial master wing this home has it all. Embodying a true indoor outdoor lifestyle, entertaining spaces flow to the beautiful outdoors all with amazing views of the valley below.

11235 E Wingspan Way Scottsdale, AZ 85255

$24,220,000
6 Beds
8.5 Baths
11,556 SqFt
Status Active
MLS # 6362093
Property Type Single Family - Detached
Price Type --
An artful masterpiece, this stunning estate was recently completed in July of 2021 by Salcito Custom Homes. Grandly positioned on 4.67 acres on one of the best homesites in Silverleaf, this home sits prominently in the iconic ''saddle'' of the Upper Canyon Summit in Silverleaf. Exuding warmth and sophistication with a unique French Modern style and architecture thoughtfully designed by Dale Gardon, this regal home captures the spectacular views of the Silverleaf Golf Course and the Valley throughout the home. The garages are perfect for a car collector with capacity for 11 cars. The superb interiors, designed in collaboration with Rebecca Salcito feature distinctive elements such as a fireplace carved from marble to hand-blown glass chandeliers, custom artwork

6044 N 44th Place Paradise Valley, AZ 85253

$22,500,000
4 Beds
7 Baths
10,656 SqFt
Status Active
MLS # 6378747
Property Type Single Family - Detached
Price Type --
Welcome to this one of a kind single level HILLTOP estate with 360 degree views- As you enter the gated circular drive and approach the spectacular entry foyer you'll be amazed by the height of the ceilings and walls of glass overlooking city & mountain views, resort sized living room, generous use of stone, marble and slab granite throughout, beautiful warm and timeless finishes. formal dining room with city views , complete bar w ice maker/dishwasher, 10 ft burled redwood doors and cabinetry throughout, West Wing features -Powder room, Luxurious primary suite with coffee bar, unreal views, 2 baths with 2 large paneled closets, granite showers, fireplace , study with wood paneled ceilings, bookshelves and workroom, 1000 sq foot gym- w bath & closet- serves as multi purpose,

11269 E Moonlight Canyon -- Scottsdale, AZ 85255

$21,500,000
7 Beds
9 Baths
11,530 SqFt
Status Active
MLS # 6384286
Property Type Single Family - Detached
Price Type --
Renowned architect Bing Hu is creating a masterpiece in the Upper Canyon of the prestigious and highly acclaimed Silverleaf community. This 11,530 SF estate is a modern adaptation of the Prairie style of architecture, perfectly situated sitting on the high foothills of the McDowell Mountains 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, certainly everything you'd expect in a home of this stature: green building materials and technologies, state of the art automation throughout, Sonos Surround Sound entertainment theater, Gaggenau ''Art of the Kitchen'' custom creation and more. Added opportunity is the GOLF MEMBERSHIP AVAILABLE with this home. Creating a masterpiece

10719 E Rimrock Drive Scottsdale, AZ 85255

$21,200,000
6 Beds
8 Baths
13,114 SqFt
Status Active
MLS # 6455254
Property Type Single Family - Detached
Price Type --
You may obtain a Silverleaf Golf Membership through this purchase. Warm and welcoming, nestled on a flat pad, not on a steep-driveway or below street-grade. The motor court, detached guest home, front and rear yard, all flow without any elevation changes. Secondary rooms, second wet bar and additional flex rooms live above. Perched on McDowell Mountains, offering an exclusive 'front row seat elevation' to the spectacular sprawling and vibrant golf course, twinkling city lights, plus captivating near/far mountain views. Flawlessly crafted and meticulously maintained by valley's renowned luxury home builder, Desert Star Construction. This signature address encompasses over 9 acres; 13,111 square feet of living space to including 1,789 SF (2 bedroom) guest home.

5724 E Mockingbird Lane Paradise Valley, AZ 85253

$19,999,888
7 Beds
9 Baths
14,801 SqFt
Status Active
MLS # 6408372
Property Type Single Family - Detached
Price Type --
Experience this incredible brand-new residence, meticulously crafted on 5 acres, which will be one of the most significant estates built in Paradise Valley. This spectacular property will offer a split, single level floor plan, lush & mature manicured grounds, impeccable finishes and design throughout in one of Paradise Valley's most expensive locations! Enjoy the world class amenities, indoor and outdoor lifestyle, pool, spa, ramada, tennis court and never before seen features in a home with the iconic view of Mummy Mountain as the backdrop. Located in the highly desirable 3 C's school district, also featuring a 11 car garage for auto collectors. This is Arizona's most prestigious presale opportunity.

4228 E Highlands Drive Paradise Valley, AZ 85253

$19,500,000
4 Beds
5.5 Baths
8,577 SqFt
Status Active
MLS # 6466779
Property Type Single Family - Detached
Price Type --
ABSOLUTELY GORGEOUS HILLSIDE ESTATE! This contemporary beauty sits on 1.25 acres with unobstructed views, stretchingfrom Camelback Mountain to the Phoenix city skyline and beyond. Located high upon the Phoenix Mountain preserve, you can take in the unbelievable panoramic views from every room. The captivating garden courtyard features a large Koi pond, turf area and serene waterfall. The spacious floor plan boosts oversized windows and high ceilings to allow in the natural light. Entertain your guests on the extended balcony's that create indoor/outdoor living and overlooks the infinity pool and spa,. Relax in the master suite with Spa like bath. Property includes a spacious guest casita and is centrally located for hiking ,biking and all the most popular dining/shopping

11264 E Wingspan Way Scottsdale, AZ 85255

$18,500,000
5 Beds
6 Baths
9,000 SqFt
Status Active
MLS # 6463142
Property Type Single Family - Detached
Price Type --
Located in the prestigious Summit neighborhood of Silverleaf, this team of master craftsman, Salcito Custom Homes, Ltd., Salcito Design Group, LLC and PHX Architecture have partnered to create a one-of-a-kind Modern Mediterranean estate. Situated on one of the most private building sites in Silverleaf, this estate boasts a 5.59-acre homesite with a 40,000 square foot building envelope and sits high over the Valley at an elevation of 2,400 ft., capturing stunning city and mountain views. This one-of-a-kind opportunity is fully approved and ready to begin construction. The 9,000 square foot design features five bedrooms and six baths, a 75-foot swimming pool, six car garage, unique skybridge and hand selected finishes that will satisfy the most discriminating buyer.

23036 N Via Ventosa Drive Scottsdale, AZ 85255

$16,950,000
9 Beds
17 Baths
25,989 SqFt
Status Active
MLS # 6409935
Property Type Single Family - Detached
Price Type --
Truly one of a kind, this Mediterranean masterpiece sits on over 6.5 acres in one of North Scottsdale's most desirable gated communities. With unsurpassed city light and mountain views, it boasts over 25,000 square feet of livable luxury with handcrafted quality and design throughout.This commanding estate has 9 bedroom suites plus two lofts, all with a private patio or balcony. Huge two story exercise building with racquetballcourt, olympic sized pool, tennis court, spa facility,12 garages and much more! Please arrange for a private tour and more information - you will not be disappointed. Please see Document tab for a detailed feature sheet.