What’s Ahead For Mortgage Rates This Week – January 30, 2017

Last week’s economic news included readings on new and existing home sales and mortgage rates. Also released were reports on new jobless claims and consumer sentiment.

New and Existing Home Sales Lower in December

According to the U.S. Commerce Department, sales of new homes fell to 536,000 sales on a seasonally-adjusted annual basis. This reading was markedly lower than the expected rate of 595,000 sales and November’s reading of 598,000 sales. Analysts said that the drop in new home sales indicated that the housing sector is still experiencing a rocky recovery. December’s reading for new home sales was 10.4 percent lower than December’s adjusted reading of 598,000 sales. December’s reading was 0.40 percent lower year-over-year.

The median sale price of new homes was $322,500 in December, which was 4.30 percent higher than in November and 7.90 percent higher than in December 2015. The dip in sales has increased inventory of available homes to a reading of 5.80 months needed to sell all new homes presently available. Real estate pros typically consider a six-month supply of homes for sale a normal inventory.

In related news, sales of pre-owned homes were also lower in December. The National Association of Realtors® reported December sales at 5.49 million on a seasonally-adjusted annual basis; this reading was lower than expectations of 5.51 million sales and November’s reading of 5.65 million sales. The slower rate of sales may signal that home prices have topped out; there is also a very low inventory of available pre-owned homes for sale as compared to demand. Sales of pre-owned homes were 2.80 percent lower than November’s reading, which was the highest rate of existing home sales since 2007. Sales of pre-owned homes were 0.70 percent higher year-over-year.

Winter weather and holidays may have contributed to lower home sales in December, but higher prices, tough mortgage requirements and a low supply of available pre-owned homes were seen as obstacles to completed home sales for December.

Mortgage Rates Mixed, New Jobless Claims Rise

Freddie Mac reported higher fixed rates for mortgages last week. The average rate for a 30-year fixed rate mortgage rose 10 basis points to 4.19 percent; the average rate for a 15-year fixed rate mortgage rose six basis points to 3.40 percent. The average rate for 5/1 adjustable rate mortgage fell by one basis point to 3.20 percent. Discount points for fixed rate and 5/1 mortgages averaged 0.40 percent.

New jobless claims exceeded expectations of 250,000 new claims with a reading of 259,000 new claims and the prior week’s reading of 237,000 new claims. Analysts said that volatility is common with new jobless claims in January. There were few layoffs reported and good news that the new jobless claims rate remained below the benchmark reading of 300,000 new claims for the 99th consecutive week. This milestone was last seen in 1970.

The four-week rolling average of new jobless claims fell by 2000 to an average of 245,900 new claims filed; this was the lowest reading since 1973.

Consumer sentiment rose to 98.5 which surpassed the expected reading of 98.2 percent and December’s reading of 98.1 percent.

Whats Ahead

Multiple readings on housing and labor related data will be released this week. Scheduled releases include pending home sales, Case-Shiller Housing Market Indices and construction spending. Reports on inflation and core inflation are due along with readings on non-farm payrolls, ADP payrolls and the national unemployment rate.

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10625 E Wingspan Way Scottsdale, AZ 85255

$8,995,000
6 Beds
7.5 Baths
10,349 SqFt
Status Active W/contingency
MLS # 6181865
Property Type Single Family - Detached
Price Type --
This elegant Formal Mediterranean Estate situated in the Upper Canyon of the prestigious Silverleaf community is ideally positioned for privacy and captures views of Camelback Mountain, city lights and extraordinary sunsets. The gated private driveway leads to auto court and front entry of this estate. From the moment you enter the grand foyer of this 10,349. ft. - 6 bedroom, 7.5 bathroom home with its stunning chandelier, you are drawn out to the pool with sparkling deck jets and oversized spa. As you meander down the hall you will find the grand dining room with generous glass 900 bottle wine cellar and butler's pantry. Amazing chef's kitchen with dual islands, custom cabinetry to the ceiling and opens to the great room and gorgeous glass wall bar.

11068 E Canyon Cross Way Scottsdale, AZ 85255

$8,950,000
5 Beds
6 Baths
11,491 SqFt
Status Active
MLS # 6165948
Property Type Single Family - Detached
Price Type --
A Ranch Hacienda home extraordinaire in the coveted Upper Canyon of Silverleaf! With the majestic McDowell Mountains as a backdrop, 360 degree views and located on truly the most private street in this desirable luxury community, this 11,491 SF masterpiece is a feast for the eyes. The quality of the construction and craftsmanship is apparent throughout and the finishes are for the most discerning, including extensive stonework, tressel beams, brick kitchen ceiling, great room tv wall, custom mill work, multiple in motion doors, and exquisite custom tilework to name just a few. The floor plan is perfect for families and entertaining, with 5 bedrooms, 4 of them being large private suites, a centrally located theater and an inviting great room that flows seemlessly to multiple charming patios

42 E Biltmore Estate Phoenix, AZ 85016

$8,900,000
6 Beds
7 Baths
11,697 SqFt
Status Active
MLS # 6205114
Property Type Single Family - Detached
Price Type --
Designed by renowned architect, Bing Hu, this desert oasis showcases clean lines, a soft sandstone palette, louvered doors, & recessed wood-paneled ceilings. It closely resembles the opulent accommodations at the Four Seasons Hualalai Resort, also designed by Hu. The Master Suite, situated on the second floor with a spacious fitness studio, is very similar to what you'll find at the resort's Presidential Villa - complete with separate his/hers bathroom & closets, a dry sauna & steam shower, sitting area with beverage refrigerator, and a spacious viewing balcony that overlooks the backyard & golf course. As you enter the home, you are greeted by soaring ceilings & sky high windows that look out onto the lush backyard and Camelback Mountain. A floor-to-ceiling, double-sided stone fireplace a

1280 N Forty Road Wickenburg, AZ 85390

$8,749,000
12 Beds
9.5 Baths
10,626 SqFt
Status Active
MLS # 5669453
Property Type Single Family - Detached
Price Type --
North Forty Ranch is a secluded retreat of over 90 acres where you are likely to see deer, butterflies and other wildlife on the lush grounds & natural desert landscaping with a ~6,200 SF main home, workshop, pool, tennis court, pond & equestrian complex. Modern Hacienda style main home features Saltillo tile floors, Mission tile roof, 6 fireplaces, 4 BR, 41/2 BA. 5 guesthouses (~4,400 SF) 8 BR & 5 BA. 4,000 SF barn, 6 heated stalls, tack room, horse wash area with hot water & cross-ties, 16' wide center lane - ceiling fans & drive-thru access. Large animal scale, hot walker & covered storage area for hay. 3/4 acre outdoor arena, 8 shaded stalls w/auto water, fenced paddocks of 1-2 acres w/water. Fenced pasture (~27 Acres) sprinklered from well. See Documents for details.

9107 E Grapevine Pass -- Scottsdale, AZ 85262

$8,450,000
5 Beds
5.5 Baths
7,170 SqFt
Status Active
MLS # 6198293
Property Type Single Family - Detached
Price Type --
Welcome to Saguaro Forest 336, another wonderful collaborative effort by Graffin Design and Black Stone Custom Homes, creators of over forty high-quality custom homes in Desert Mountain* over the last twelve years. This 7,170 square foot Contemporary-styled, Great Room plan home, featuring five bedrooms, two offices/dens/studies, two garages with room for five cars, and a wonderful game room, will be built on two levels (with no steps on either of the two levels) on a superb 2.99 acre, southeast/south-facing custom homesite in a beautiful and wonderfully remote part of Desert Mountain, easily the premier golf and recreational master planned development in the western United States, if not the entire country. The home will be positioned forward of its two neighbors, for great privacy.

5003 E Sky Desert Lane Paradise Valley, AZ 85253

$8,250,000
5 Beds
7 Baths
7,692 SqFt
Status Active W/contingency
MLS # 6114617
Property Type Single Family - Detached
Price Type --
Enter electronic gates down a long drive to this beautiful modern French Country house on 2.86 acres. The entry stuns with white paneled walls + checkered floors of blue limestone + white marble. The gourmet kitchen with zinc butler's pantry, opens to the greatroom with large electronic doors opening to massive grass lawn, resort style pool+spa, sport court, BBQ area, citrus trees + even a well. The master bedrm includes makeup rm, private gym with attached dog room, coffee + beverage bar + laundry rm, bathrm with soaking tub, steam shower + two large closets. The game room + dining room feature white oak floors + reclaimed French beams. The 4 spacious additional ensuite bedrms also have white oak floors. A laundry rm with 2 washer dryer sets + mud rm both have stamped concrete floors.

5035 N Invergordon Road Paradise Valley, AZ 85253

$8,200,000
7 Beds
11 Baths
15,302 SqFt
Status Active
MLS # 6064279
Property Type Single Family - Detached
Price Type --
On the doorstep of Camelback Mountain, nestled away on a private 2-acre estate, is a stunning 15,000 sq ft masterpiece. When you enter the hand-forged iron gates, you'll notice a unique level of privacy and seclusion. The architect's attention to detail is superb with a timeless, elegant design. Retreat to the master wing to discover a domed indoor spa, salon, and private gym. For entertaining and relaxation, you can play in the billiards room, private movie theater, and wine cellar. Experience the ultimate indoor-outdoor Arizona lifestyle with the sparkling mosaic pool, outdoor kitchen, pool house, and separate guest quarters. You'll enjoy the best of both worlds: your own private sanctuary amidst the finest shops and restaurants in Paradise Valley. Contact us today for your private tour!

19920 W Verde Hills Drive Wickenburg, AZ 85390

$8,000,000
3 Beds
3.5 Baths
5,365 SqFt
Status Active
MLS # 5839589
Property Type Single Family - Detached
Price Type --
Powell Ranch sits on a plateau providing 360 views, with 105 deeded acres. Designed by architect Bill Otwell, the 5,365 SF Santa Fe style main house with 3BR/3.5BA, office and media room is constructed of 18'' thick adobe walls covered with cement plaster. 9'+ ceilings are unique - stripped Aspen poles above giant pine beams, 4 fireplaces, 3 fountains & lush landscaping. 1,066 SF guesthouse is 2BR/1BA; detached garage/workshop fits 3 cars, RV, storage and 1/2 BA. Equestrian facilities include 4 outdoor stalls/corrals w/auto water (3 shaded), covered hay storage, tack room, hot walker, horse wash, and 60' round breaking pen. Listing SF/Ac and taxes includes 6 parcels (201-08-008V; 201-08-008T; 201-08-008U; 201-08-023H; 201-08-023E; 201-08-023A).

6836 N 36th Street Phoenix, AZ 85018

$7,950,000
3 Beds
3 Baths
3,095 SqFt
Status Active
MLS # 6132108
Property Type Single Family - Detached
Price Type --
The ''Circular Sun House'' was designed by Frank Lloyd Wright and was his FINAL DESIGN, and known as the Norman Lykes House, built in 1967. Designed to blend in with the curves of the surrounding desert mountain, this iconic masterpiece was the last home designed by Wright and one of only 14 circular homes by the master architect. Overlapping concentric circles create a floorplan that flows seamlessly from one room to another while every room takes in unobstructed majestic views of Palm Canyon and the city below. Curved walls, clad in golden-hued Philippine mahogany cover the three bedrooms and hallway, reflecting the natural light of Palm Canyon. Sprawling entertaining spaces flow outside to ample patios and a crescent-shaped pool.

6136 N Kachina Lane Paradise Valley, AZ 85253

$7,900,000
9 Beds
13 Baths
18,364 SqFt
Status Active
MLS # 6208375
Property Type Single Family - Detached
Price Type --
Extravagant Elegance Awaits you at this 3 1/4 Acre Private Estate in the coveted Casa Blanca area of PV. Complete with a 2bed/2bath Guest Home, FULL-SIZE INDOOR BASKETBALL Court, Tennis Court, Palatial Swimming Pool+Spa+Pool House, Home Theater, Wine Cellar + MORE. This 18,000+ sq ft residence has beautiful Mountain Views + features Immaculate landscaping with lush grass, numerous citrus trees, custom fountains + several charming sitting areas surrounding the property. This French-Inspired Chateau was Lavishly Renovated in 2012 with Custom-Carved Mahogany cabinets, Marble flooring, Hand-carved ceiling moldings + the most expensive fixtures + furnishings from all over the world. Gorgeous Chef's Kitchen + FULL Butler Kitchen + 3rd Full Kitchen off Large Guest Suite - all equipped with the

6130 E Mockingbird Lane Paradise Valley, AZ 85253

$7,800,000
5 Beds
9 Baths
10,763 SqFt
Status Active
MLS # 6142925
Property Type Single Family - Detached
Price Type --
Grand Paradise Valley estate, Lush 2.185 acres, quality finishes throughout including wood and stone floors, carved Canterra stone fireplaces (5)and accents, gourmet kitchen plus separate prep kitchen, 4 en suite bedrooms, 2 offices,3 powder rooms, game room, large sit down bar area with walk in cooler/wine room, exercise room, 3 laundryareas, covered patios with heating and misting systems, full guest house with garage, 6 total garages, formal and informal spaces, state of the art home automation, Loads of storage space, A masterpiece of artful thought and design. Design by Est Est

5000 E Sky Desert Lane Paradise Valley, AZ 85253

$7,800,000
6 Beds
8 Baths
8,900 SqFt
Status Active
MLS # 6212254
Property Type Single Family - Detached
Price Type --
Look no further than this enchanting Santa Barbara inspired custom gated estate nestled on ~ 2 acres with endless sophisticated charm and breathtaking views of Four Peaks, Phoenix, and Mummy Mountains. This one-of-a-kind estate boasts 5 bedrooms, including a guest suite/casita, that would make a sensational separate office, a guest house and kitchen and 7+ car garage. Between the black and white Carrara marble flooring, gas lit lanterns and soaring beams, this home will leave you feeling mesmerized. Gourmet kitchen with large island, imported quartzite countertops, custom cabinetry and Wolf/Asko appliances. Beautiful master suite with his/hers walk-in closets, separate workout space and lovely sitting room with gas fireplace.

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