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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303 W 9th Street Mesa, AZ 85201

$499,900

3 Beds

2 Baths

1,824 SqFt

Status Active

MLS # 6694337

Property Type Single Family Residence

Price Type --

Home is eligible for a property specific $7500 grant when financing through PNC Bank with FHA or Conventional loan as a primary residence. Just on the edge of the gorgeous Evergreen Historic District on a lovely tree lined street you will find this remodeled mid-century home offering a central Mesa location, nearby amenities and the perfect blend of original charm and modern touches you've come to expect. Art & design lovers, the long time owners have maintained and remodeled this home offering a unique space to create the life you've dreamed of. An updated kitchen with newer appliances and a formal dining room and living room comprise the heart of the home. Two secondary bedrooms and a primary ensuite bedroom, boasting two closets, complete the front portion of the home. A permitted addition at the back of the home includes a nice size laundry room, a generous storage area, and a large great room overlooking thebeautiful backyard providing a wonderful space to entertain and relax. Set up a pool table and you'll have a fantastic game room! New paint, beautiful wood and tile floors abound with NO CARPET! A 3 year old roof, 8 year old a/c unit, 5 year old water heater, brand new sewer line to the street, and ridiculously low utility bills make this home a find, both stylistically and economically. The gorgeous backyard includes an expansive covered patio, fruit trees, rose bushes and lush irrigated landscaping with a large RV gate opening to the roadway behind. And did we mention the location? Watch the on-going evolution of downtown Mesa and take advantage of all it has to offer such as Spring Training at Hohokum Stadium, Riverview Park/Retail. the Mesa Arts Center, ASU Mix Center, and a plethora of dining options. And being close to light rail means you're a short train ride from so many amenities offered by nearby Tempe and Phoenix, such as ASU, Tempe Marketplace, Sky Harbor Airport, and great freeway access. Come see it today and you'll find yourself daydreaming non-stop about all of the ways in which you will flourish in this beautiful home.

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3131 N Central Avenue Phoenix, AZ 85012

$499,900

2 Beds

2 Baths

1,125 SqFt

Status Active

MLS # 6624731

Property Type Apartment

Price Type --

*Construction Completed* 3.5% buyer incentive can be used towards rate buy down, upgrades, closing costs, or combo of those! Introducing Edison Midtown Phase 2 with 60 new construction condominiums. This spacious two bedroom condo offers ten ft. ceilings, an open floor plan, and large master bedroom with ensuite bathroom. Chefs kitchen offers expansive cabinetry, quartz countertops and stainless steel appliances including a gas range. Edison Midtown features incredible amenities for that perfect Urbanite lifestyle. A beautiful pool and lap pool, 2000 sq. ft. fitness center and lounge, and gated parking garage.

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3470 S Bluejay Drive Gilbert, AZ 85297

Open House

$499,900

3 Beds

3 Baths

2,182 SqFt

Status Active

MLS # 6687261

Property Type Single Family Residence

Price Type --

Welcome to this magical abode, where you'll find more charm than a Disney movie. This 3 bedroom, 3 bathroom home in Power Ranch is like a unicorn - rare and highly sought after. The kitchen is decked out with shiny stainless steel appliances fit for a top chef. Plus, the serene courtyard is so peaceful, you'll feel like you're sipping espresso in Italy or sipping margaritas in Mexico. And who needs a private pool when you can splash around in the community pool like a mermaid? Let the kids go wild at the nearby playground while you soak up the sun. This place has all the bells and whistles for a super comfy and convenient lifestyle. Don't miss out on this gem - it's a real powerhouse in Power Ranch!

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3522 W Boston Street Chandler, AZ 85226

Open House

$499,900

3 Beds

2 Baths

1,795 SqFt

Status Active

MLS # 6701216

Property Type Single Family Residence

Price Type --

Prime Chandler location! Situated near Intel, Chandler Mall shopping and dining, bordering Tempe, easy access TO 202 and 101 freeways, Chandler Regional Hospital and Banner Health facilities. 3 large bedrooms, 2 baths, with pool and spa, this property provides both comfort and convenience. 2-car garage and NO HOA!

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5830 N 12th Place Phoenix, AZ 85014

Open House

$499,900

3 Beds

2 Baths

1,736 SqFt

Status Active

MLS # 6698366

Property Type Townhouse

Price Type --

Beautifully updated townhome located in the desirable L'Ermitage II complex in heart of North Central Phoenix. Situated perfectly on a north/south facing lot, this 3 bedroom, 2 bath home offers a private gated entry, a well-designed interior layout and an abundance of natural light. Living room features soaring ceilings, a stunning Carrera marble fireplace, recessed lighting and new oversized sliding glass doors leading to the patio to incorporate the perfect blend of indoor/outdoor living. Gourmet kitchen includes rich granite countertops, custom cabinets, Carrera marble backsplash, new stainless steel appliances, and a separate dining area. Main level primary suite includes additional patio access with enclosed blinds, large walk-in closet, a beautiful granite vanity and an oversized custom slate shower with glass enclosure. Spacious Upstairs primary suite includes a private balcony overlooking the mature trees and mountain views. Spa-inspired ensuite features gorgeous Carrera marble tiled walls, an oversized free standing tub with rainfall and hand held shower heads, custom cabinets, dual sink vanity with granite countertops, full height marble backsplash, and a spacious walk-in closet. With wainscoted walls and vaulted ceilings, the third bedroom is perfect for guests or a dedicated office space. Low maintenance private backyard features a large patio with custom flagstone, lush artificial turf, and multiple seating areas for entertaining. With only 9 Units, L'Ermitage is a charming complex conveniently located near several restaurants, shops, parks and the 51 freeway.

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372 W Nikita Drive San Tan Valley, AZ 85140

$499,890

5 Beds

3 Baths

2,586 SqFt

Status Active

MLS # 6630546

Property Type Single Family Residence

Price Type --

On 4-18-24, the Carpets were cleaned and ready for a new owner. Large backyard! Don't wait any longer, as the seller is highly motivated. This is your chance to own a stunning McKinley floor plan with a 5-bedroom, 3-bathroom that includes a loft in the coveted Meadows community. The house is close to a new shopping complex, restaurants, a hospital, and grocery stores. You'll love the spacious and well-designed floor plan, which features an open concept on the main floor with access to a covered patio. The kitchen is a chef's dream, with plenty of cabinet and counter space and a walk-in pantry. With one bedroom and a full bath downstairs, you'll have plenty of space for your family and guests. Upstairs, you'll find the laundry room, three additional bedrooms, and a split primary bedroom, each spacious and perfect for relaxation. The primary suite is the ideal retreat, with a large, secluded room, a private ensuite bathroom with dual sinks, and a walk-in closet. The loft is suitable for movie nights or a separate space to unwind. The house is fully landscaped and ready for you to move in. The lot is large enough for a future pool/spa/spool. Take advantage of this opportunity to own your dream home!

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1731 W Palmaire Avenue Phoenix, AZ 85021

$499,880

3 Beds

2 Baths

1,375 SqFt

Status Active

MLS # 6694080

Property Type Single Family Residence

Price Type --

WOW, this home has just completed an extensive remodel and it looks great! This 3 bed 2 bath home on a large north central, culdesac lot also has a great pebble tech pool! The interior has been updated with plank flooring, quartz counters, new paint inside and out, baseboards, vanities, tile showers, lighting, landscaping, epoxy garage floors, the list goes on! Located in area of million dollar homes, this house has it all at half the price. Large back yard for entertaining, two car garage, storage, large interior laundry room, space for RV, no HOA. Newer AC and appliances. Third bedroom can make a great work from home office. Come check out this north central Gem today!

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5160 W Village Drive Glendale, AZ 85308

$499,800

3 Beds

2 Baths

1,622 SqFt

Status Active

MLS # 6692890

Property Type Single Family Residence

Price Type --

WOW!! This immaculate,ultra clean 3 Br/2 Bath, 3 CAR GARAGE home is located on a Cul-De-Sac lot. New natural color painted inside. Eat-in kitchen has GRANITE COUNTERTOPS, decorative backsplash, plenty of cabinets, stainless steel KitchenAid appliances. Spacious master suite has a bay window, dual sinks, & separate shower& soaking tub. Tile in all the right places, new carpet in bedrooms, plank flooring in Living Room. The covered, tiled Patio has sunscreens. Enjoy the beautiful and immaculate desert landscaping in this inviting backyard with manicured bushes, fruit trees, & a raised garden. A CUSTOM-BUILT FIREPLACE is the Focal Point. LOCATION! Easy access to 101 & 17 freeways, Arrowhead restaurants and Shopping Mall. Beautifully maintained subdivision with acres of trails & parks.

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25229 W Rockaway Hills Road Morristown, AZ 85342

$499,800

3 Beds

2 Baths

1,801 SqFt

Status Active

MLS # 6639688

Property Type Manufactured Home

Price Type --

Your new home away from the crowds awaits in Morristown! Santa-Fe-style residence sitting on a more than 1-acre lot on a desired corner! This property is fully fenced w/an RV gate for all your toys. Beautiful interior has tile floors, a cozy fireplace in the living room, gorgeous light fixtures, and neutral paint. Cook gourmet dishes in the eat-in kitchen showcasing SS appliances, center island, a walk-in pantry, white cabinetry, and ample counter space. Split main retreat has a walk-in closet and a full bathroom with a dual sink vanity and a jetted tub for a spa-like feel. In the backyard, discover a fenced covered patio w/a Ramada, a greenhouse, a detached garage w/a small workshop attached, a fire pit, and natural desert landscaping. Don't miss the AZ sunsets and mountain views! Hurry!

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1683 W Cottonwood Lane Phoenix, AZ 85045

$499,800

3 Beds

2.5 Baths

1,977 SqFt

Status Active

MLS # 6671249

Property Type Single Family Residence

Price Type --

Foothills Club West former model home situated on one of the few larger lots within this subdivision. Highly upgraded with two tone paint & plantation shutters throughout. Entertainment layout as kitchen is completely open to dining area and flows to great room with slider out to patio. Staggered maple cabinets, granite counter-tops, island, stone backsplash, recessed lighting, all SS appliances including French door refrigerator. Surround sound in family room, primary bedroom & prewired on patio. First floor has a private office/den with built in maple cabinets and bench window seating. Huge open loft with built in cabinets. Primary bedroom has crown molding, private door to balcony, large bath remodeled 2022 with separate tub & frameless glass shower, updated tile and dual integrated sinks in quartz countertop, large walk-in closet. Good size secondary bedrooms, full bath and upstairs laundry room with built in cabinets, front loading washer and dryer included, split from primary bedroom. Custom front door with glass insert, sun-screens, brushed nickel hardware and fixtures throughout. Garage has new side utility door and upgraded epoxy floor coating. Mountain views, close proximity to 202 Fwy, many hiking trails, new bike trail and shopping/dining. This home will not disappoint.

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18326 N Gila Springs Drive Surprise, AZ 85374

$499,800

2 Beds

2 Baths

1,782 SqFt

Status Active

MLS # 6673887

Property Type Single Family Residence

Price Type --

Beautifully designed home in the highly sought-after Sun City Grand community! Versailles pattern travertine flooring extends through the living area with a stone fireplace & additional sitting area off the kitchen ideal for a conversation or game table. The open kitchen boasts granite countertops, stainless steel appliances, drawer pull-outs, & RO. All bathrooms have been elegantly crafted with travertine & gorgeous vanities. Den area complete with custom built-in desk & shelving. The backyard offers a covered patio with a built-in BBQ ideal for hosting & citrus trees. Also featured, a 2-car garage with built-in cabinetry, water softener, & heat shield. You'll love the Sun City Grand community with amenities like a pool, spa, gym, clubhouse, sports courts, & fun community events!

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10778 W Mckinley Street Avondale, AZ 85323

$499,775

3 Beds

2.5 Baths

2,269 SqFt

Status Active

MLS # 6655230

Property Type Single Family Residence

Price Type --

New home ready for move in this spring. Two-story Tisdale floorplan with sought after Craftsman style exterior. The first floor features a flex room with elegant double glass doors. This room can serve as a home office, game room or sitting area. The second floor features a loft, the owner's suite and two additional bedrooms. The spacious kitchen features stainless steel appliances with gas range and a large island with ample sitting space, overlooking the dining and sitting areas. The stylish cabinetry is a gray tone which is complemented by upgraded quartz countertops, subway tile backsplash, and wood color plank tile. Great home with spacious sitting and socializing areas. Home warranty included.

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