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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11135 W Levi Drive Tolleson, AZ 85353

$494,990

4 Beds

3 Baths

2,375 SqFt

Status Active

MLS # 6678125

Property Type Single Family Residence

Price Type --

MULTI-GEN HOME!!! This single-story home has such a smart layout that is perfect for families who like their personal space. Two bedrooms located at the front of the home, kitchen and dining area, versatile open livingroom, while the owner's suite is in the back for added privacy. The ensuite features its own kitchen, washer/dryer hookup, living room, bedroom, bathroom, and separate entrance. Built in 2022! Front and back landscaping. Custom paint that is out of this world! Beautiful Quartz countertops, stainless steel appliances, and gas stove! 220 V outlet in the garage! RO system and water softner. Enjoy the covered back patio while admiring the mountain views. Stone veneer and paver driveway out front, at 2375 sq ft., this could make an amazing investment/income property!

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422 E Huber Street Mesa, AZ 85203

$494,949

3 Beds

2 Baths

1,748 SqFt

Status Active

MLS # 6582614

Property Type Single Family Residence

Price Type --

SELLER OFFERING $5k in concessions!! This wonderful 3-bed & 2-bath property harmoniously blends comfort and charm. Offering a 2-car garage and a desert landscape. Discover an inviting layout showcasing a formal living room w/fireplace, a bright dining room adjacent to the kitchen, and a versatile family room w/French doors to the back. Plantation shutters, vaulted ceilings, designer paint, and a mix of tile & wood-look flooring enhance the home's relaxed ambiance. The kitchen boasts built-in appliances, granite counters, ample wood cabinets, a pantry, and a breakfast bar. Main bedroom is a private retreat with a full bathroom. Den has a double-door entry. You'll love the spacious backyard featuring an open patio, cozy deck, & a sparkling play pool & Spa for year-round enjoyment!

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4570 Fletcher Court Wickenburg, AZ 85390

New

$494,900

2 Beds

2 Baths

1,568 SqFt

Status Active

MLS # 6694530

Property Type Single Family Residence

Price Type --

Move in READY! This is THE JUNIPER MODEL YOU HAVE BEEN LOOKING FOR! HIGH ELEVATION*PRIVACY*VIEWS FROM YOUR SPACIOUS, COVERED FRONT PATIO* DESERT VIEWS FROM YOUR BACK PATIO* ORIGINAL WATER FEATURE GRACEFULLY COMPLIMENTS YOUR MAGNIFICENT SUNSET VIEWS*LOW MAINTENANCE YARD w/ WATER SYSTEM*EXTENDED GARAGE*SECURITY SCREEN DOOR*GREAT WINDOW TREATMENTS*PLANTATION SHUTTERS*STYLISH LIGHT FIXTURES 7 FANS* LOCATED ON A CUL-DE-SAC*YOU COULDN'T ASK FOR MORE* MAKE THIS JUNIPER MODEL YOURS! AMENITIES GALORE*

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3702 W Mescal Street Phoenix, AZ 85029

$494,900

3 Beds

2 Baths

1,630 SqFt

Status Active

MLS # 6663377

Property Type Single Family Residence

Price Type --

The perfect home in North Mountain Village awaits! Gorgeous remodel has it all, including ENERGY EFFICIENCY! The beautiful kitchen has quartz counters, lots of storage, breakfast bar, & coffee nook, & opens into the dining and sitting rooms. Across the breakfast bar is the cozy living room & stunning fireplace. Step out to the large covered patio, enjoy the hot tub under the stars, or dine poolside before taking a dip in the pebble finish pool. This backyard oasis has lemon, orange, & fig trees! Primary ensuite has gorgeous walk-in shower, dual vanities, & large closet. Guest bath has stunning claw foot soaking tub. Guest bedroom has fabulous Murphy bed; perfect for guests, office space, or more. Energy efficient & smart home: solar energy, & dual pane windows. Extra insulation, water softener, bluetooth pool cleaner, ceiling fans, and more. Close to State Farm Arena, freeways, shopping, light rail, and exciting Metro Center redevelopment!

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14150 W Boca Raton Road Surprise, AZ 85379

$494,900

6 Beds

3 Baths

2,673 SqFt

Status Active

MLS # 6665776

Property Type Single Family Residence

Price Type --

Spacious home with 2 downstairs bedrooms and 4 upstairs bedrooms. This home has been a well kept up rental property for many years and owners want to retire. Needs new carpet or vinyl flooring and a little TLC. Seller may give a cash credit back to buyer at COE for new flooring. All offers will be reviewed. Seller may carry back loan short term with 35% down, competitive rate OAC. Currently tenant occupied until February 28 2024.

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2030 E Michigan Avenue Phoenix, AZ 85022

$494,511

3 Beds

3.5 Baths

1,734 SqFt

Status Active

MLS # 6660938

Property Type Single Family Residence

Price Type --

QUICK MOVE-IN!!! NEW CONTEMPORARY URBAN STYLE COMMUNITY! Ask about Builder Incentives! POOL VIEW! 3 bedrooms, all ensuite, plus powder room. 2 car garage, 2 X6 Construction, Sheared Ext Walls (All plywood wrapped) Spray Foam insulation and insulated garage door for EXTREME ENERGY EFFICIECY! This home is loaded with standard features and appointments, beyond everyone else! Bedroom balcony's and first floor patio. 2 Greatroom Balcony's! Quartz kitchen countertops, stainless steel appliances, including refrigerator, Luxury Plank Vinyl floors, carpet. 5 minutes to Loop 101 and 51 Hwy, Mayo, Kierland, Scottsdale Quarter and Desert Ridge! * Community Pool, Fitness Center coming!

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7917 W Melinda Lane Peoria, AZ 85382

$494,500

3 Beds

2 Baths

1,520 SqFt

Status Active

MLS # 6659422

Property Type Single Family Residence

Price Type --

Gorgeous POOL HOME in Fletcher Heights! Don't miss this renovated single story featuring 3 bedrooms plus flex space/2 bath home. Enter into the lovely family room that flows into the dining area and chef's kitchen with NEW stainless appliances, breakfast bar, painted cabs and walk in pantry! Stunning views of the sparkling pool with waterfall out of your slider. The Primary suite boasts walk in closet, two sinks and separate tub and shower. The flex space can be used as a home office/extra living space/anything! RV gate as well as 2 separate side yards! All new LVP, plush carpet, fixtures, etc! -Full interior paint -LVP -Baseboards -Light Fixtures -SS appliances -Carpet -SS sink -Plumbing fixtures -Paint cabs -Hardware -Resurface counters -Pool repairs/cleaning -Landscaping -Etc.

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23367 W Florence Avenue Buckeye, AZ 85326

$494,061

5 Beds

3 Baths

2,753 SqFt

Status Active

MLS # 6618729

Property Type Single Family Residence

Price Type --

Brand New Home with Beautifull Kitchen, Large Kitchen Island! 5 Bedrooms, 3 Baths, & Study. Large family room separate from living room. Walk in shower in Primary, Covered Patio with slider door. Hurry this home will go quickly!! Home can close in Octoebr/November. This is a High Performance Home with smart technology, makes it so you can truly live in your element!!!!

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40998 W Chambers Drive Maricopa, AZ 85138

$494,000

3 Beds

2.5 Baths

2,240 SqFt

Status Active

MLS # 6679832

Property Type Single Family Residence

Price Type --

Public Remarks: This corner oversized N/S lot in the highly sought after The Lakes at Rancho El Dorado. Has pond/waterfall views in a tranquil backyard setting with a covered patio. Enjoy relaxing after work with a glass of wine in your hot tub. Bring on the good life! Has RV gate to enable you to park your weekend getaway vehicle, 2.5 garage, epoxy floors, storage and additional parking. Newly remodeled eat-in-kitchen with large breakfast bar. 3 bedroom spilt + den, ensuite has separate shower/tub, generious closet with an outdoor entrance. Minutes away from shopping, dining and golf course.

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11122 N Thunderbird Road Maricopa, AZ 85139

$494,000

3 Beds

2 Baths

1,405 SqFt

Status Active

MLS # 6687874

Property Type Manufactured Home

Price Type --

BEAUTIFUL 3.33 ACRE PROPERTY IDEAL FOR SPACIOUS LIVING AND ENTERTAINMENT. PERFECT FOR HORSES, ANIMALS, TOYS, RV, OR ALMOST ANYTHING YOU CAN IMAGINE! LARGE FENCED PASTURE AREAS AND OUTBUILDINGS. NEWLY REMODELED OPEN FLOOR PLAN INSIDE WHICH INCLUDES NEW CABINETS, GRANITE COUNTERTOPS, FRESH FLOORING (CARPET & VINYL THROUGHOUT), UPDATED AND IMPROVED LED LIGHTING AND CEILING FANS IN ALL BEDROOMS. UPGRADED AND IMPROVED STUCCO. FRONT AND BACK FULL LENGTH PORCH WITH WOOD POSTS AND NICE EXTERIOR LIGHTING. PROPERTY INCLUDES PRIVATE AND SEPARATE GARAGE WITH NEW DOOR AND OPENER. COMMUNITY WATER SERVICE TO PROPERTY VIA THUNDERBIRD WATER DISTRICT. COME BY AND CHECK IT OUT FOR YOURSELF!!!!!

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14130 W Desert Glen Drive Sun City West, AZ 85375

$494,000

3 Beds

2 Baths

1,996 SqFt

Status Active

MLS # 6693416

Property Type Single Family Residence

Price Type --

Absolutely Stunning Golf Course Lot w/Amazing Views of Both Golf Course and Lake, 3 Bedroom, 2 Bath, Single Level Home, Open Kitchen w/Granite Countertops, Smooth Cooktop & Wall Oven, Breakfast Bar, Appliances Included, Eat-In Kitchen Dining, Spacious Greatroom w/Gas Fireplace, Formal Dining Room, Master Bedroom w/Walk-In Closet, Master Bathroom w/Dual Sinks & Separate Tub & Shower, Enclosed Gigantic Arizona Room w/Views Galore of the Open Golf Course, Professionally Landscaped Front & Backyard, 2 Car Garage, New Roof in 2017, New A/C Unit 2018, HOA Includes Front Yard & Common Area Maintenance, 3rd Bedroom Used as Den/Office, Come Check It Out!

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2650 S Los Altos Drive Chandler, AZ 85286

$494,000

3 Beds

2.5 Baths

1,509 SqFt

Status Active

MLS # 6649175

Property Type Single Family Residence

Price Type --

Wow! This turnkey 2-level residence with a spacious front yard, RV gate, & a 2-car garage is now on the market! Vaulted ceilings, fresh palette, lovely light fixtures, tile flooring, bountiful natural light, & a generous-sized living room perfect for receiving guests await you. Impeccable eat-in kitchen showcases a plethora of beautiful wood cabinets, recessed lighting, mosaic tile backsplash, a breakfast bar, an island, ample counter space, & sliding glass doors to the back. Continue upstairs to find the oversized main retreat boasting gorgeous wood-look flooring and an immaculate ensuite w/dual sinks & a carpeted walk-in closet. You'll love hosting fun gatherings in the vast backyard w/a covered patio, pavers, & a matured shade tree! Get an up-close look today.

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