What’s Ahead For Mortgage Rates This Week – September 26, 2016

Last week’s economic news was abundant with releases on home builder sentiment, housing starts, building permits, sales of previously owned homes. The Federal Open Market Committee of the Federal Reserve released its customary statement at the conclusion of its meeting; Fed Chair Janet Yellen also gave a press conference. Weekly readings on new jobless claims and mortgage rates were released as usual.

NAHB: Builder Sentiment Increases in September

Home builder confidence in housing market conditions increased in September according to the National Association of Home Builders Housing Market Index. Builder confidence rose five points to 65; analysts expected a reading of 60 based on August’s reading of 59. NAHB said that September’s reading was boosted by more “serious” buyers entering housing markets.

Components used to determine NAHB HMI readings were also higher. Builder confidence in current market conditions rose six points to 71; builder confidence in housing market conditions over the next six months rose by five points to 71. Builder confidence in buyer traffic in new housing developments rose four points to 48. Buyer traffic readings have not reached 50 since 2005; 50 is a neutral benchmark for NAHB HMI readings.

Home prices continue rising at a higher pace than wages; this is pressuring first-time and moderate income buyers out of the market. An ongoing shortage of available homes is pressing prices higher as demand increases. Analysts pay close attention to the NAHB HMI as building more new homes is a key factor in easing the shortage of homes for sale.

Housing Starts, Building Permits Lower

Commerce Department readings on housing starts and permits issued were lower for August Housing starts were lower in August at 1.142 million starts on a seasonally-adjusted annual pace. Analysts expected 1.182 million housing starts based on July’s reading of 1.212 million starts. Regional readings showed a dip in starts in the South. Severe flooding in Louisiana contributed to the lower reading for housing starts. August’s reading for housing starts was 5.80 percent lower than July’s reading and 0.90 percent lower than for July 2015.

Building permits issued were nearly flat in August; this was likely due to the prime building season winding down 1.139 million permits were issued as compared to 1.144 million permits issued in July. Single-family starts were six percent lower than for July and were 1.20 percent lower year-over-year.

Existing Home Sales Dip: High Demand, Low Supply Cited

Sales of pre-owned homes fell by 0.90 percent in August to a seasonally-adjusted annual rate of 5.33 million sales. Analysts expected a reading of 5.48 million sales; July’s reading for sales of pre-owned homes was 5.38 million sales.

Low inventory of available homes continues to impact housing markets as demand for homes increased and prices rose; the national average home price was $240,000 in August. Rising home prices continued to be driven by high demand and low supplies. These conditions also impacted first-time and moderate income home buyers who were pressured to keep up with rapidly rising home prices.

While mortgage rates remain relatively low, higher home prices and tight mortgage credit requirements remain obstacles for first-time buyers.

Mortgage Rates, Weekly Jobless Claims Lower

Freddie Mac reported lower mortgage rates last week. The average rate for a 30-year fixed rate mortgage fell by two basis points to 3.48 percent; the average rate for a15-year fixed rate mortgage fell on one basis point to 2.76 percent. The average rate for a 5/1 adjustable rate mortgage was lower by two basis points at 2.80 percent.

Analysts expected new jobless claims to remain flat at the prior week’s reading of 260,000 new claims, but 252,000 new claims were filed for the lowest reading since July. The four-week rolling average of new jobless claims fell by 22250 claims to 258,500. The four-week reading is considered a less volatile reading than week-to-week readings.

Federal Reserve: No Increase in Fed Rate

The Federal Open Market Committee said in its post-meeting statement that the target federal funds rate would not be raised. In a press conference given after the FOMC statement, Fed Chair Janet Yellen said that although the economy continued to improve, the Fed had concerns over the labor market and decided not to raise rates. Any increase in Federal Reserve rates triggers increases in consumer lending rates.

What’s Ahead

This week’s readings include Case-Shiller Home Price Indices, readings on new and pending home sales and weekly readings on mortgage rates and new jobless claims.

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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 Phoenix, AZ 85018

$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

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.

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. Ranch is a 95,000+/- acre ranching operation consisting of approximately 2,292 deeded acres, 52,567 Arizona State leased acres and 10,492 private leased acres located in the high Sonoran Desert 15 miles North of Wickenburg, AZ; and the Little Horse portion of 27,980 Forest Service acres and 171 private leased acres located in the pine-covered country along the I-17 freeway beginning 3 miles south of Flagstaff, AZ. The 160-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...

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 superb interiors, designed in collaboration with Rebecca Salcito feature distinctive elements such as a fireplace carved from Breche De Vendome Marble to hand-blown glass chandeliers, custom artwork and draperies with custom ombre alpaca fabrics. European Oak wood is throughout.

5953 N Yucca Road Paradise Valley, AZ 85253

$24,000,000
6 Beds
8 Baths
16,844 SqFt
Status Active
MLS # 6361568
Property Type Single Family - Detached
Price Type --
An absolute buyers windfall, sellers would love to see their masterpiece come to life and can carry with a substantial down during the build process. Easily 30 million plus upon completion. Downstairs master suite, office, bowling, movie & lounge. Upstairs 4 large en-suite bedrooms with therapy/treatment room, second living, gym and sauna. The expansive almost 4.5 acre property would be privately gated with two gates, tennis courts, above grade negative edge infinity pool and spa. Designed by CP Drewett and finishes selected by Claire Ownby, a buyers tweaks can be added and submitted for final permit approval saving a buyer years of planning and meetings. The perfect distance from Camelback mountain with a large desert buffer. Private, secure & exclusive.

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

8100 N 68th Street Paradise Valley, AZ 85253

$20,000,000
5 Beds
7.5 Baths
17,912 SqFt
Status Active
MLS # 6420290
Property Type Single Family - Detached
Price Type --
Authentic Italian Villa in the heart of Paradise Valley; 10 years in the making. Influenced by the Getty Villa outside of Rome, the materials and artisans who hand crafted them were imported from Italy to work onsite with meticulous detail, under the supervision of noted designer Juan Sandoval. The living spaces open to a grand loggia surrounding two courtyards of lush beauty, (over 300 rosebushes on the property) transporting one's soul to a different place in time. The architectural precision, quality of workmanship, construction quality, attention to detail is unsurpassed. The 60'x60' hand-tiled mosaic heated salt water pool (150,000 gal.) is a work of art, as is each bedroom suite w/ fireproof walls, all Venetian plastered walls throughout, every bookmatched marble floor.

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 Stately Living in this 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.

10719 E Rimrock Drive Scottsdale, AZ 85255

$19,250,000
6 Beds
8 Baths
13,114 SqFt
Status Active
MLS # 6284795
Property Type Single Family - Detached
Price Type --
GOLF MEMBERSHIP AVAILABLE!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 including detached 1,789 square foot, two-bedroom guest home.

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.

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