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

Last 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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20665 W Briarwood Drive Buckeye, AZ 85396

$487,000

3 Beds

2 Baths

1,623 SqFt

Status Active

MLS # 6691653

Property Type Single Family Residence

Price Type --

This beautiful Verrado home is tastefully upgraded throughout beginning at the tiled front porch right through to the low maintenance backyard with extended covered patio where you can catch a glimpse of those magical AZ sunsets. Wallpaper, chandeliers, upgraded sinks, window enhancements, triple sliding patio doors, flooring, garage overhead storage racks, solar and more.

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17604 E Stacey Road Queen Creek, AZ 85142

$487,000

2 Beds

1.5 Baths

896 SqFt

Status Active

MLS # 6689185

Property Type Single Family Residence

Price Type --

With outstanding views of the San Tan Mountains from your extended front porch, this is the perfect little home in the desert! The flawlessly laid out, open concept floorplan maximizes the square footage. This home boasts 2 bedrooms and 1.5 baths. Master bath has an upgraded tile surround. Kitchen has been upgraded with tile backsplash, extended cabinets, and a large pantry. French doors in the master bedroom open to a covered patio, perfect for your morning coffee. The oversized garage can hold all your toys and there is additional storage space in the attic. The front-loading washer and dryer are located in the laundry nook within the garage and have additional storage cabinets. The large covered back porch and desert landscaped backyard is perfect for entertaining and is big enough for for a pool. This home is 2 years old and has been perfectly maintained. Washer/Dryer/Refrigerator Convey. With no HOA, this is the perfect starter/retirement home.

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20032 W Exeter Boulevard Buckeye, AZ 85396

$486,995

4 Beds

2 Baths

2,270 SqFt

Status Active

MLS # 6663801

Property Type Single Family Residence

Price Type --

The ranch-style Augusta offers thoughtfully designed living space . The foyer leads to an open floor plan with a Gourmet kitchen, a great room, that has center meet doors to covered patio. This home offers a split floor plan with 2 bedrooms and a full bath and another bedroom in center of home next to the convenient laundry room. The Lavish Primary Suite is on the other end of the home, with a beautiful bathroom and walk in closet. Home is complete with soft water loop and tankless water heater! A must see!!

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17979 W Avenida Del Sol -- Surprise, AZ 85387

$486,995

4 Beds

3 Baths

2,611 SqFt

Status Active

MLS # 6694724

Property Type Single Family Residence

Price Type --

Come see this incredible floorplan, MOVE IN READY! An amazing layout with 4 bedrooms, 3 baths w/study. In addition to being energy efficient and a Smart Home, the many upgrades make this one stand out. Great curb appeal, partial view fence, good size yard great for entertaining. Two-tone paint, 9' ceilings. Nice Flagstone cabinets, Quartz kitchen and baths, island, and walk in pantry. Lots of room to cook and move around!

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5509 N 194th Avenue Litchfield Park, AZ 85340

$486,990

3 Beds

2 Baths

1,630 SqFt

Status Active

MLS # 6693780

Property Type Single Family Residence

Price Type --

Brand new open-concept, well designed home has the perfect amount of space to in all the right places. This single level home offers 3 bedrooms, open study, 2 bathrooms, and 2 car garage with private yard and room for a pool! The owner's suite has an impressive walk-in shower with custom tile surrounds and very large closet with lots of shelving for storage. You'll be dazzled by the gourmet kitchen and stainless-steel appliances with gas cooktop in your gourmet kitchen, upgraded cabinets and countertops with custom backsplash, upgraded flooring throughout are just some of the custom choices that make this home a must see. 2X6 construction and extensive new home warranty.

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15626 W Kendall Street Goodyear, AZ 85338

New

$486,990

5 Beds

3 Baths

2,685 SqFt

Status Active

MLS # 6695660

Property Type Single Family Residence

Price Type --

Below Market Financing Available!!!!!!!!!! A two-story home, this space features an open design on the first floor that combines the dining room, Great Room and kitchen as an ideal entertainment area. An attached patio is perfect for outdoor experiences, while a separate bedroom is great for guests. Upstairs is an owner's suite with two walk-in closets, along with three additional bedrooms. Photos are renderings of a model home, not the actual home.

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5612 W Moody Trail Laveen, AZ 85339

$486,990

4 Beds

2.5 Baths

2,338 SqFt

Status Active

MLS # 6679556

Property Type Single Family Residence

Price Type --

Beautiful Brand New Home in a Highly Desirable Central Location - Featuring countless upgrades such as 9' ceilings, Shaw - Milan - Surf 17x17 Tile, Granite countertops in the kitchen. Whirlpool Stainless steel appliances. White cabinets. Energy-efficient features throughout, Programmable thermostat, gas heater, gas range. Spacious walk-in closet in owners suite. Front yard landscaping, covered patio in the backyard. Spectacular Mountain Views! Minutes from downtown Phoenix in a master-planned community featuring walking trails, greenbelts, neighborhood parks and playgrounds. Conveniently located off the Loop 202 and near schools, shopping and dining!

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16080 W El Cortez Place Surprise, AZ 85387

$486,490

4 Beds

3 Baths

2,342 SqFt

Status Active

MLS # 6602025

Property Type Single Family Residence

Price Type --

Brand new, energy-efficient home available NOW! A unique single-story home featuring a social living area. Umber cabinets with white/grey granite countertops and multi-tone carpet in our Elemental package. Paloma Creek is now pre-selling in Surprise. Residents will enjoy floorplans that feature flex spaces, 5 bedroom layouts and covered back patios. There's fun for the whole family at the community clubhouse, pool, outdoor kitchen, and fitness center. 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.

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2711 N 38th Street Phoenix, AZ 85008

$486,000

3 Beds

2 Baths

1,237 SqFt

Status Active

MLS # 6666072

Property Type Single Family Residence

Price Type --

Home in the center of everything! Just minutes from Tempe, Sky Harbor, and Downtown! Upgraded Gorgeous Arcadia-Lite Home! Home is open floor plan and perfect for entertaining. Stained concrete floors throughout. Massive, but cozy Back Patio. Huge back yard. RV gate. Appliances Convey. Walking distance to great restaurants, shopping, transportation, and close to freeways! Stylish master retreat boasts contrast accent wall, large closet, & private en suite w/barn door entry. Designer tile, fixtures, & vanity. Roof and AC under 4 years old. Rates are no issue as we have a Large Seller and/or lender concession available!

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2321 E Millbrae Court Gilbert, AZ 85234

Open House

$486,000

3 Beds

2 Baths

1,486 SqFt

Status Active

MLS # 6687346

Property Type Single Family Residence

Price Type --

Welcome to this charming property featuring a cozy fireplace, creating a warm and inviting atmosphere. The natural color palette throughout the home adds a sense of tranquility and easy living. With additional rooms for flexible living space, you have endless possibilities to customize to your needs. The primary bathroom boasts a separate tub and shower, double sinks, and good under sink storage. Step outside to enjoy the fenced backyard with a covered sitting area, perfect for relaxing or entertaining. Fresh interior paint and new flooring throughout the home provide a modern touch. Don't miss the opportunity to make this your dream home!

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3319 W Verde River Road San Tan Valley, AZ 85144

$485,990

3 Beds

2 Baths

1,784 SqFt

Status Active

MLS # 6678861

Property Type Single Family Residence

Price Type --

Popular Arroyo floor plan featuring 3 bedrooms plus open study/den. , Beautiful kitchen with upgraded cabinets, granite countertops, plank tile flooring, upgraded lighting and plumbing fixtures, and much more. Our Master Planned community boasts a 7400 square foot community pool, 6 spacious parks, 3 basketball courts, sand volleyball, pickle, ball, bocce ball and corn hole. This community is an ideal location near the base of the San Tan Mountains and close to all the best shopping has to offer.

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3651 S 97th Avenue Tolleson, AZ 85353

$485,990

5 Beds

5 Baths

3,131 SqFt

Status Active

MLS # 6692180

Property Type Single Family Residence

Price Type --

Beautiful Brand New Home in a Highly Desirable West valley location. Features countless upgrades such as 9' ceilings, Shaw 17x17 Tile, Granite countertops in the kitchen. Whirlpool Stainless steel appliances. White shaker cabinets with Stainless Steel Pulls. Energy-efficient features throughout, WIFI & programmable thermostat. Spacious walk-in closet in the primary suite. Front yard landscaping, covered patio in the backyard. Spectacular Mountain Views! The community features a greenbelt, a premium neighborhood park with playground. Conveniently located near the new 202 freeway, schools, shopping and dining, and Estrella Mountain Regional Park.

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