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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4608 E Desert Drive Phoenix, AZ 85044

$500,000

2 Beds

2 Baths

1,596 SqFt

Status Active

MLS # 6645498

Property Type Townhouse

Price Type --

Single level Garden Home in the Pointe South Mountain. Situtated in back of the community on a cul-de-sac. Home features 2 bedroom split for plan with a den/office. Both bedrooms have walk in closets. Both bathrooms updated. Flooring is 16x16 Travertine in all main living areas and carpet in bedrooms. Fireplace has been converted to gas. Relax in the spacious outdoor patio area with views of south mountain. Pointe community features 4 pools, 2 of them are heated. Walking path to South Mountain just steps away.

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4106 W Electra Lane Glendale, AZ 85310

$500,000

4 Beds

3 Baths

1,910 SqFt

Status Active

MLS # 6700472

Property Type Single Family Residence

Price Type --

NO HOA! Beautiful home in a beautiful neighborhood. Pride of ownership in beautiful condition. Near I-17 and the 101 provides quick access to freeways taking you quickly in any direction. New roof! New exterior paint. New water heater. New flooring throughout. All newer appliances and includes the washer, dryer and fridge. Beautiful Pebble Tec pool with water feature. Has a bedroom on the bottom floor. Mountain views with fantastic hiking trails nearby and near the water park, railroad park, RC park, shopping, and golf! No disappointments here!

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34971 N 30th Avenue Phoenix, AZ 85086

$500,000

3 Beds

3 Baths

1,566 SqFt

Status Active

MLS # 6704358

Property Type Townhouse

Price Type --

Discover perfection in this 3-bed, 3-bath townhouse nestled in North Phoenix's prime neighborhood. Originally renovated to impeccable standards for owner's daughter, now a rare find on the market! No detail overlooked in this flawless remodel, boasting top-quality craftsmanship and premium materials throughout. From elegant finishes to modern amenities, enjoy luxurious living at its finest. Don't settle for less - seize this extraordinary opportunity to own a meticulously updated townhouse with no compromises.

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11326 E Sandoval Avenue Mesa, AZ 85212

Open House

$500,000

4 Beds

2 Baths

1,794 SqFt

Status Active

MLS # 6701291

Property Type Single Family Residence

Price Type --

Welcome to this appealing residence with a tasteful neutral color paint scheme that creates a welcoming ambiance throughout. The primary bathroom offers a relaxing experience with a separate tub and shower, double sinks, and the kitchen has beautiful stainless steel appliances, a kitchen island, and an accent backsplash for added style. Fresh paint and new appliances give the interior a like-new feel, ensuring reliability and quality. The primary bedroom features a generous walk-in closet for storage needs. Outside, the fenced-in backyard provides privacy and space for gardening or leisure activities, while the covered patio is perfect for relaxation. This residence embodies comfortable and modern living, offering a perfect balance of style and functionality for your enjoyment.

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2604 N Black Rock Road Buckeye, AZ 85396

Open House

$500,000

3 Beds

2 Baths

1,849 SqFt

Status Active

MLS # 6644221

Property Type Single Family Residence

Price Type --

Back On Market ! Stunning newer single level Verrado home with huge backyard! Spacious extended garage Fabulous interior showcases a neutral palette, chic bright lighting , and wood-look tile w/plush carpet in bedrooms. The bright living room is perfect for receiving guests! The large eat-in kitchen boasts SS appliances, granite counters, tile backsplash, a pantry, 42 inch white cabinetry w/crown molding, and an island w/breakfast bar. Versatile den for an office or play area! Main bedroom has an ensuite with dual sinks, separate tub/shower, & a walk-in closet. Outside, the spacious backyard is your retreat! Great for relaxing or entertaining with a covered patio, well-laid travertine, fire pit, artificial turf.

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14406 W St Moritz Lane Surprise, AZ 85379

Open House

$500,000

4 Beds

2 Baths

2,391 SqFt

Status Active

MLS # 6700941

Property Type Single Family Residence

Price Type --

Discover your own oasis in Royal Ranch, one of the most desirable communities in Surprise! This single-story gem features 4 beds, 2 baths, fresh paint, and has been meticulously maintained. The backyard paradise includes a pool, hot tub, waterfall, and misting system. With a 3rd car driveway, extended garage, and RV gate, there's ample parking for all. Just minutes from Surprise's attractions like Surprise Stadium, city center and Ottawa University. Don't miss out!

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133 W Latona Road Phoenix, AZ 85042

$499,999

4 Beds

2.5 Baths

2,126 SqFt

Status Active

MLS # 6686503

Property Type Single Family Residence

Price Type --

New Construction! Ask about how to qualify for $0 down and a 4.99% interest rate! Ascend Communities proudly unveils Latona Fontaine, where 11 meticulously crafted lots offer unparalleled vistas of the majestic South Mountain. Introducing the Sage floorplan, a spacious retreat spanning 2126 square feet with 9 foot ceilings on both floors. Inside, the open living area seamlessly connects the living room to the dining area, offering scenic views of South Mountain through large windows. Upstairs, find four bedrooms, plus a versatile loft, catering to your family's needs. The Sage floorplan is designed for modern family living, blending comfort, style, and functionality. Finishes in this home include luxury vinyl plank flooring throughout, can lighting, 40 soft-close white shaker cabinets in the kitchen, quartz countertops, gourmet kitchen backsplash, custom tile shower in the primary bathroom, black hardware throughout and pre-wiring for ceiling fans. Nestled at the intersection of Central Ave. and Baseline Rd. This vibrant community boasts an unbeatable location within walking distance of picturesque hiking trails at South Mountain, perfect for adventurous family outings. As an added delight, an exclusive pedestrian gate offers seamless access to the scenic highline canal, just a stone's throw away from your residence. Beyond nature's doorstep, enjoy seamless access to public transportation, urban conveniences, and easy connections to major freeways: Interstate 10, Interstate 17, and the 202. Embrace the best of both worlds - serene natural escapes and city accessibility, making Latona the ultimate choice for families seeking adventure and convenience.

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18643 W Miami Street Goodyear, AZ 85338

$499,999

3 Beds

2.5 Baths

2,489 SqFt

Status Active

MLS # 6701844

Property Type Single Family Residence

Price Type --

The perfect stunning 3-bedroom, 2.5-bathroom residence nestled in the heart of Goodyear. This home boasts contemporary light fixtures and open floor plan seamlessly connects the family room to the chef's kitchen. The kitchen featuring a gas cooktop, granite countertops, and sleek stainless-steel appliances. a large island. A master suite, with a full bathroom that has dual sinks, separate tile shower and tub, large walk-in closet. RV Gate, A 3 car tandem garage that offers durable epoxy floor ensures easy maintenance, while the well-organized cabinets optimize storage efficiency, resulting in a space that is both visually appealing and highly practical. Your new home awaits you! organized cabinets optimize storage efficiency, resulting in a space that is both visually appealing and highly practical. Your new home awaits you!

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2739 E Windsor Avenue Phoenix, AZ 85008

$499,999

4 Beds

3 Baths

1,544 SqFt

Status Active

MLS # 6609476

Property Type Single Family Residence

Price Type --

Sellers Offering 2% Concession. Centrally located 3bd/2ba Main house with 230 sq ft guest house with a bathroom and no HOA. Close to hospitals, AZ Center, sports stadiums, symphony hall, light rail, parks, airport and hiking nearby at Camelback Mtn. The home has a welcoming great room that leads right into the beautifully updated kitchen with quartz countertops, pendant lighting, stainless steel appliances and tile/vinyl throughout the whole downstairs. The primary suite is downstairs with a large walk-in closet and its own ensuite. Stairs were redone with vinyl. The upstairs has 2 bedrooms with walk-in closets and a hall bathroom. Guest house has its own AC unit, bathroom, and beautiful vinyl flooring. Roof replaced 2022 & new AC on the main house in 2019.

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11538 E Navarro Avenue Mesa, AZ 85209

$499,999

3 Beds

2.5 Baths

2,198 SqFt

Status Active

MLS # 6667783

Property Type Single Family Residence

Price Type --

Welcome to this beautifully designed home in the highly sought-after Sunland Springs active adult community! This charming residence boasts a fantastic floor plan, offering spacious and bright living areas perfect for relaxation, hobbies and entertaining. Priced to sell quickly, this home presents an incredible value for such a prime location. Enjoy the numerous amenities of this vibrant community, including golf course, swimming pool, fitness center, and more. Don't miss this rare opportunity to own a home in Sunland Springs at such an attractive price!

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6525 W El Cortez Place Phoenix, AZ 85083

$499,999

3 Beds

2 Baths

1,720 SqFt

Status Active

MLS # 6678806

Property Type Single Family Residence

Price Type --

Stunning Designer 3bed/2bath Home Located In Quiet Hillside Development On A Cul De Sac Lot* Gorgeous Interior Design Draped In Soft Neutral Palette Colors* Kitchen w/ Plenty of Cabinets Space, Large Pantry & Island to entertain Your Guests* The 12'X 20' Office/Homeschool/Media Room Is Perfect For the New Lifestyle Demands* Nice Size Master Suite & Bath W/ Dbl Sinks & Lg Walking* French Doors Leads Out To Covered Patio & Spacious Backyard W/ Manicured Tiff Winter Lawn* Sunset Views Of Luden Mtn W/Access to Hiking & Endless Mountain Biking* Please Read Semi Private Remarks Regarding the APS solar PANEL AGREEMENT... There is no monthly fee and the homeowner is credited a monthly amount for APS allowing them to use the panels to feed their power grid system

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3594 W Oil Well Road San Tan Valley, AZ 85144

$499,999

3 Beds

2.5 Baths

1,816 SqFt

Status Active

MLS # 6687160

Property Type Single Family Residence

Price Type --

You'll LOVE this incredible single-story home in the desirable Community of Promenade! Come inside to find a captivating open layout filled with recessed & decorative light fixtures, a trending palette, wood-look tile floors, a contemporary fireplace, & multi-sliders that merge indoor & outdoor living. Gourmet kitchen is fully equipped with a gas cooktop, a wall oven, granite counters, tile backsplash, a walk-in pantry, beautiful wood shaker cabinetry with crown molding, & a large island with a breakfast bar. Retreat to the carpeted main bedroom, featuring a full ensuite with dual sinks, a makeup vanity table, & a walk-in closet. The home's elegance extends outdoors to the backyard, offering a covered patio, an attached Ramada, an exterior fireplace, a fire pit, & pavers.

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