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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2323 S Gordon -- Mesa, AZ 85209

$480,000

3 Beds

2 Baths

1,692 SqFt

Status Active

MLS # 6687150

Property Type Single Family Residence

Price Type --

Welcome to Barrington Estates, a lush gated community, conveniently located just off the 202 and Baseline road. Find yourself at home in this meticulously cared for home. This 3 bedroom 2 bath home provides an open layout with ample space for gathering. The tastefully updated cabinetry, quartz countertops, paint, and flooring provides a fresh feel upon entering the home. The large master bedroom features a separate bathtub and shower, a large walk in closet, and an extended vanity. The full guest bathroom has also been updated from top to bottom. The garage has a 220 volt plug for all of your EV charging needs!

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10457 W Palm Lane Avondale, AZ 85392

$480,000

5 Beds

2.5 Baths

2,261 SqFt

Status Active

MLS # 6689871

Property Type Single Family Residence

Price Type --

Very convenient to freeway and loads of shopping centers close to every convenience venue and family need this home is Light Bright Open with room for everyone all bedrooms are upstairs with two bathrooms and half bathroom is on the main floor with formal and family living areas first floor is all tile stairs and second floor are carpeted indoor laundry room large covered patio low care landscape that allows for you to choose your own design

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9925 E Chestnut Drive Sun Lakes, AZ 85248

New

$480,000

2 Beds

2 Baths

1,936 SqFt

Status Active

MLS # 6691418

Property Type Single Family Residence

Price Type --

Welcome to your WATERFRONT PARADISE in the 40 & over ACTIVE ADULT community of Cottonwood in Sun Lakes! Home boasts BREATHTAKING SUNRISE VIEWS, ensuring every evening is picturesque. The versatile floorplan includes a DEN/OFFICE perfect for work or relaxation. Spacious eat-in kitchen + formal dining area for larger gatherings. Gorgeous views from the living room complete w/fireplace. Guest room is split from the main bedroom. Primary bedroom has an ENSUITE & a SEPARATE EXIT to the backyard w/ more SPECTACULAR VIEWS! Unwind on the large, covered, PATIO w/tons of custom brick PAVERS for serene living BRAND NEW upgraded WINDOWS & SLIDERS throughout, HVAC (2015), water heater (2021), roof 2018) , Home impecably cared for w/ duct cleaning , A/C service, termite treatment & weed control.-2024

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16182 W Winchcomb Drive Surprise, AZ 85379

$480,000

3 Beds

2.5 Baths

2,465 SqFt

Status Active

MLS # 6626889

Property Type Single Family Residence

Price Type --

Less than a half mile away from Costco, and the Prasada shopping center. This Gorgeous model home has extensive upgrades that include wood floors as you enter the home. Office/den with french doors located on the first floor. Large kitchen with pantry. Upgraded counters, and tile floors that opens to a large family room. The home also features a formal living and dinning room. Second floor has a loft area with bedrooms. Master is large with generous master bath with separate shower and bath, large walk in closet. Backyard features a refreshing pool with water fall and covered patio.

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821 W Saguaro Lane San Tan Valley, AZ 85143

$480,000

4 Beds

3 Baths

3,082 SqFt

Status Active

MLS # 6635619

Property Type Single Family Residence

Price Type --

SELLER IS OFFERING *UP TO $2,000 IN CONCESSIONS. SEE BELOW FOR DETAILS. This two-level home in Skyline Ranch is everything you can ask for! 22 Seller Owned Solar Panels included, to save hundreds of dollars on your annual electric bill! New exterior paint with faux stone and decorative wrought iron window finishings. Explore inside to discover a warm, inviting atmosphere created with wood-look flooring that stretches throughout the home. Designer palette & arched doorways are some features you will love! The fabulous kitchen is complete with granite counters, maple wood cabinetry, two pantries, recessed lighting, a center island with a breakfast bar, and built-in appliances, including a refrigerator. On the first floor, you will find a large bedroom & full bathroom, along with great storage space under the stairs, that will make this perfect for multi-living opportunities. Primary bedroom showcases double, french doors, a sitting room, private bathroom with dual sinks, an enormous garden tub, separate shower and a MASSIVE walk-in closet! With two additional bedrooms and bathroom on the second floor, you will also find a versatile loft area with built-in surround sound that can be utilized as a home office, playroom or movie room. The home also has a large family room/dining room, separate living room and dining nook. The large backyard, with a great covered patio, provides excellent space. Walking distance from the community playground and park. Seller will offer *up to $2,000 in Concessions to Buyer with the right offer and accepted terms through January 13, 2024, or *up to $1,000 in Concessions to Buyer with the right offer and accepted terms through January 20, 2024.

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642 W Shannon Street Chandler, AZ 85225

$480,000

3 Beds

2 Baths

1,436 SqFt

Status Active

MLS # 6656701

Property Type Single Family Residence

Price Type --

Immerse yourself in the epitome of modern living with this 2022 renovated single-story gem in the Thunderbird Park subdivision of Chandler, AZ! Revel in the luxury of a 3-bed, 2-bath haven boasting a New AC unit, fresh two-tone interior paint, exquisite wood-like floors, mosaic tile accents, and a wealth of other upgrades- doors, door hardware, trim, nest thermostats, soft-closing kitchen cabinets, recessed lighting, matching stainless steel appliances, premium quartz countertops, and revitalized bathrooms with top-notch fixtures, washer and dryer included. Roof less than 5 yrs old, Enjoy the convenience of a 1-car garage, RV gate, and exterior LED light fixtures. Nestled minutes away from Downtown Chandler, Downtown Gilbert, Chandler and San Tan Malls, plus easy access to 202/101 and US 60 freeways, this home invites you to experience unparalleled comfort and style. Don't miss the chance to call this pristine abode your own!

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25401 S Truro Drive Sun Lakes, AZ 85248

$480,000

3 Beds

2 Baths

1,845 SqFt

Status Active

MLS # 6648001

Property Type Single Family Residence

Price Type --

Welcome to your new home in the age restricted beautiful community of Sun Lakes. Features include 3 bedrooms, 2 baths, Spacious screened in Arizona room. Enjoy being a home chef and entertaining in your new kitchen. Beautiful new cabinets, granite countertops, stainless steel appliances including built in wine fridge, recessed lighting & pendant lights above kitchen island. New tile plank flooring, carpet in the bedrooms. Bathrooms have been updated including new Bidet sprays, vanities, fixtures and new tile flooring. New additions in 2022 dual pane windows, AC, doors & baseboard throughout. Oversized laundry room. 2 car garage. Relax in your backyard and try out your putting skills on the newly designed green. Connect with me today for more details.

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9714 N 185th Lane Waddell, AZ 85355

$480,000

3 Beds

2 Baths

2,066 SqFt

Status Active

MLS # 6671578

Property Type Single Family Residence

Price Type --

Welcome to your oasis in the heart of Waddell! This stunning -3 bedroom, 2 bathroom, den with a POOL! Home is 2,066 sq ft of comfortable living space. Front Entry into the living room/dining room, on into the open floor plan- family room, breakfast room, kitchen with breakfast bar. Off the family room is a private master suite with huge walk in shower, double sinks, walk in closet and water closet. The laundry room is off the hallway from the kitchen and a private hallway to the garage, den, two additional bedrooms and a full bath. Step into the backyard complete with a cover patio, sparkling pool, built in grill, and tropical plants create a serene, relaxing atmosphere. Huge gated side yard offers additional parking or storage!! A MUST SEE!!!! Cortessa offers 4 neighborhood parks with playgrounds.

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40767 W Colby Drive Maricopa, AZ 85138

$480,000

5 Beds

2.5 Baths

3,306 SqFt

Status Active

MLS # 6670128

Property Type Single Family Residence

Price Type --

Elegant 5-Bedroom + Loft, 2.5-Bath Home with 3-Car Extended Garage & OWNED Solar! Step into this 3,306 sqft gem, where sophistication seamlessly meets functionality. The formal living & dining rooms flow seamlessly into the kitchen, which features brand-new stainless steel appliances & an open floor plan extending to the living room. 1 bedroom downstairs. Upstairs, discover a spacious loft, master suite, & three additional bedrooms. The master bath boasts double sinks with a separate shower & tub. Huge master closet, which could almost serve as a sixth bedroom! Outside, the back patio overlooks low-maintenance desert landscaping & a custom paver design. Recent additions include 2 brand new AC units. With owned solar panels, this home is both eco-conscious and cost-effective. Welcome home!

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7908 S 7th Way Phoenix, AZ 85042

$480,000

3 Beds

2 Baths

1,734 SqFt

Status Active

MLS # 6671421

Property Type Single Family Residence

Price Type --

Upgrades everywhere in this 3 bed, 2 bath plus den/office home in the desirable, gated Villages at Verona. Two-tone paint, wood-look tile, quartz countertops, upgraded cabinetry, LED recessed lighting, stainless appliances, expansive kitchen island with premium pendant lighting, faux wood blinds, iron security entry door, security system with exterior cameras, and 2-car garage with overhead storage. Enjoy sunset views from the back patio with fully landscaped backyard. Community pool, playgrounds, close to Downtown, Sky Harbor, South Mountain hiking trails.

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4723 E Gary Street Mesa, AZ 85205

$480,000

4 Beds

2 Baths

1,405 SqFt

Status Active

MLS # 6683478

Property Type Single Family Residence

Price Type --

Welcome home! Nestled on a massive lot in a highly sought after neighborhood, this remodeled home includes new floors, a massive backyard with RV gate, baseboards, paint, brand new carpet, updated lighting and a bright, open floorplan. Situated in a fantastic location near numerous amenities including shopping and restaurants, with easy access to the 202 freeway. This incredible home won't last long!

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9551 E Redfield Road Scottsdale, AZ 85260

$480,000

2 Beds

2.5 Baths

1,111 SqFt

Status Active

MLS # 6675877

Property Type Townhouse

Price Type --

Welcome to this inviting property with a calming natural color palette that creates a serene atmosphere throughout. The home boasts other rooms for flexible living space, allowing you to customize the layout to suit your needs. The primary bathroom features good under sink storage, keeping your essentials organized and easily accessible. With fresh interior paint, the home feels bright and airy, ready for you to move in and make it your own. Don't miss the opportunity to make this peaceful retreat yours!

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