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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20124 W Exeter Boulevard Buckeye, AZ 85396

$492,377

3 Beds

2 Baths

1,940 SqFt

Status Active

MLS # 6672106

Property Type Single Family Residence

Price Type --

The ranch-style Augusta offers thoughtfully designed living space. The foyer leads to an open floor plan with a Gourmet Kitchen, a great room, and dining room and center meet doors to a covered patio. You'll find a spacious owner's suite next to the dining room, showcasing a walk-in closet and an attached deluxe bathroom. This plan offers two bedrooms and a bath. Home is complete with a two car garage with extra storage space.

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2302 N Central Avenue Phoenix, AZ 85004

$492,000

2 Beds

2 Baths

1,646 SqFt

Status Active

MLS # 6703158

Property Type Apartment

Price Type --

Stunning Midtown Condo! Highly sought after split floor plan all on one level and includes Den! Fresh and Bright, Large Balcony with a view! Inviting open kitchen, full size Washer/Dryer in oversized laundry room with extra storage, gas fireplace, granite counter tops. Brand new carpet! Two assigned private underground parking spaces in the gated garage. Community is complete with an on-site property manager, community pool/spa/sauna, clubhouse, theater room and fitness center. Tapestry is perfectly located directly in front of a light rail stop and minutes from downtown. Near many local restaurants, Phoenix Art Museum, Footprint Center, Chase Field, Symphony Hall, Herberger and Orpheum Theater.

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24260 N Big Springs Ranch Road Paulden, AZ 86334

$492,000

3 Beds

2 Baths

1,324 SqFt

Status Active

MLS # 6703232

Property Type Manufactured Home

Price Type --

HUGE OPPORTUNITY FOR A SAVVY BUYER! A BEAUTIFUL COUNTRY HOME with low 2.7% interest rate VA assumable loan for a qualified VA buyer. On 2 acres this quaint southwest style home is country living at its finest. Pride of ownership really shines in this upgraded home with 2x6 (R24) insulated walls & R38 9' ceilings. Just bring your clothes because ALL appliances, furnishings, decor items, tools and lawn tractor all stay. Enjoy beautiful sunsets, cozy fires on the new rear TREX deck overlooking 11 fruit trees, 4 smoke trees, Aspens & Willows. A workshop FULL of tools with a greenhouse full of plants can be yours. Many areas to enjoy the country views, covered front deck with a courtyard & 2 car detached garage. Zoned for horses. This is a pristine must see home. You will not be disappointed.

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9455 E Purdue Avenue Scottsdale, AZ 85258

$492,000

2 Beds

2 Baths

1,496 SqFt

Status Active

MLS # 6679853

Property Type Apartment

Price Type --

Stop by and check out this charming and well appointed 2 bedroom + den/bonus room, 2 bath, 1496 square foot ground level condo in Scottsdale's sought after Starfire at the Villages community! Primary suite with sliding door access to the covered patio, ensuite bath with dual sinks, granite countertops and a walk in closet! Kitchen boasts granite countertops, stainless steel appliances, a breakfast nook and lots of cabinet space! Spacious family room with sliding glass doors to the patio, ceiling fan and fireplace too! Reserved covered parking, community pool/spa, tennis, hiking/biking trails and a fantastic Scottsdale location just minutes from the Loop 101, Old Town, the Shea corridor, spring training, shopping and more!

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14244 N 160th Drive Surprise, AZ 85379

Open House

$492,000

4 Beds

2.5 Baths

1,866 SqFt

Status Active

MLS # 6692348

Property Type Single Family Residence

Price Type --

Welcome to a beautiful property that relaxes the senses with its neutral color paint scheme. The kitchen makes a statement with a stunning accent backsplash and a center island, making meal prep a delight. New appliances contribute to its modernity. The primary bedroom is a sanctuary, boasting a large walk-in closet for your convenience. Privacy is key in this property, with a fenced-in backyard perfect for quiet outdoor relaxation. A private in-ground pool beckons on warm days, and a patio offers a place to soak up the sunshine. The home undergoes a breath of fresh air with fresh interior paint, giving an undeniably cozy feel. Don't miss out on this chance to own a slice of comfort wrapped in sophistication.

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4111 E Bradford Avenue San Tan Valley, AZ 85143

$491,990

4 Beds

3 Baths

2,219 SqFt

Status Active

MLS # 6701851

Property Type Single Family Residence

Price Type --

Welcome to your dream home! This charming spanish-style abode features Ashton Woods' coveted Sunflower floorplan. With 4 beds, 3 baths, and 2,219 sqft of space, it's perfect for your family and even has a spacious 2.5-car garage. Inside, enjoy modern living with included stainless steel gas appliances a 4-panel glass slider, and upgraded 8' doors. Don't miss out on this opportunity for luxury and convenience! Don't miss out on this opportunity!

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17750 W Hatcher Road Waddell, AZ 85355

$491,960

4 Beds

3 Baths

2,052 SqFt

Status Active

MLS # 6701913

Property Type Single Family Residence

Price Type --

This Gorgeous sprawling floor plan has 2052 SF , w/3 bedrooms, 3 bathrooms, and a 2 car garage! Almost ready for you! Est COE in Jun/Jul 2024. This home features a fresh, neutral color palette, offering 36'' burlap shaker cabinetry, a large kitchen island, white quartz countertops, 9' ceilings and tile flooring. It also includes features you'll love like a soft water loop, under cabinet lighting in the kitchen, dual pane low-E windows, multi-zone thermostat, and a smart home system. The exterior features front yard landscaping, a covered patio and private backyard. Conveniently located off the 303, this gated community is near Costco, Walmart, and shopping. **Finishes may vary from sample photos and virtual tour.

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18721 E Swan Drive Queen Creek, AZ 85142

$491,000

3 Beds

2 Baths

1,637 SqFt

Status Active

MLS # 6704115

Property Type Single Family Residence

Price Type --

Welcome to this tree-lined neighborhood with sidewalks! What an appealing and inviting community to call home! A gated front courtyard adds an extra layer of charm and privacy to your home. The updated kitchen, bathrooms, flooring, and baseboards add a modern touch to this 3 bedroom, flex room, 2 bathroom home. The flex room adds versatility to the layout, catering to various needs or preferences. The huge primary bedroom walk-in closet, extra closets and shelving add plenty of storage space and are definite pluses. A private and low-maintenance backyard with a covered patio and extended covered turf area is the perfect outdoor retreat from the elements, allowing for year-round enjoyment of the outdoor space. This quiet community is a lovely place to call home.

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14130 W Desert Glen Drive Sun City West, AZ 85375

$491,000

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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40274 W Michaels Drive Maricopa, AZ 85138

$490,995

5 Beds

3 Baths

2,570 SqFt

Status Active

MLS # 6681266

Property Type Single Family Residence

Price Type --

The heart of this ranch floor plan is an open layout with a great room, a breakfast nook and a gourmet kitchen with a walk-in pantry and a center island. The owner's suite is adjacent, and showcases a generous walk-in closet and an attached bath with double sinks and deluxe shower with separate tub. 4 additional bedrooms and two baths round out the residence. A 3-car garage and a covered patio are also included!

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16148 N 178th Avenue Surprise, AZ 85388

New

$490,900

4 Beds

2.5 Baths

2,645 SqFt

Status Active

MLS # 6682536

Property Type Single Family Residence

Price Type --

Honey stop the car! This Surprise Farms home has much to offer! Big - Over 10,000 square foot lot!! RV Gate. Outdoor living at its finest with a sparkling pool and Jacuzzi, built-in firepit with seating, Covered patio and a basketball court and Storage Shed. This 2 story home has 4 bedrooms, 2.5 bath, Great living space on the main floor as well as an upstairs lot/bonus space. Nice kitchen with plenty of cabinets and granite countertops. Location, location, location! Minutes to Willow Canyon High School, Restaurant, shopping, medical and the 303 freeway.

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9922 E Tiburon Avenue Mesa, AZ 85212

$490,900

4 Beds

3 Baths

2,093 SqFt

Status Active

MLS # 6661820

Property Type Single Family Residence

Price Type --

Priced below comps! Experience modern living in the coveted East Mesa community. This 2-year-old home offers the ideal blend of contemporary design and convenience such as the low-maintenance landscaping and the added benefits of solar panels, tankless water heater and water softener. Monthly budgeting for this home is a breeze! HOA includes front yard maintenance and the solar panels provide a huge savings per year on electric bills. Inside, find a spacious open concept equipped with all the modern finishes plus a walk-in pantry. A first-floor bedroom with a full bath adds versatility, while the second-floor offers a large primary bedroom retreat complete with a dual vanity en-suite and a sizable walk-in closet. Two additional bedrooms, one with its own walk-in closet and another full bath with a dual vanity. Outside this impeccable home indulge in a plethora of resort-style amenities including a pool with twisting slides, a lap pool, spa, cabanas, fire pits, and Fitness Center which includes a Spin Room and Movement Studio for a variety of workouts. The community center serves as a hub for various small to large gatherings with its Game Room, meeting/business room, and Event Center. Outdoor enthusiasts will delight in the multiple parks and sports courts available for basketball, volleyball, tennis, and bocce. Check out the aerial video in Photos section to preview the community! Conveniently located near SR-24, Loop 202, and US-60, as well as a variety shopping, dining, and entertainment options including popular San Tan Village shopping district, this home is easily accessible to everything the east valley has to offer.

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