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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18812 N 94th Avenue Peoria, AZ 85382

$469,000
2 Beds
2 Baths
1,483 SqFt
Status Active
MLS # 6684237
Property Type Townhouse
Price Type --
Fully Remodeled Westbrook Village Gem! 15K CAPITAL RESERVE ASSESSMENT WILL BE PAID BY SELLER FOR BUYER!!! This stunning property has undergone a complete transformation, boasting meticulous attention to detail and high-quality finishes throughout. Fairway Ridge is situated in the coveted Westbrook Village community, this home offers both elegance and functionality. With spacious living areas, a gourmet kitchen, luxurious bathrooms, and impeccable landscaping, this residence is the perfect blend of style and comfort. Don't miss your chance to call this meticulously remodeled home yours!

10459 E Natal Avenue Mesa, AZ 85209

$469,000
3 Beds
2.5 Baths
1,730 SqFt
Status Active
MLS # 6683132
Property Type Single Family Residence
Price Type --
Prepare to be impressed by this well-maintained home in Mulberry Community! The lovely façade provides a low-care front yard, stone accents, and a cozy front porch. You'll love the large great room graced with wood-look flooring, bountiful natural light, and sliding glass doors leading to the back patio. The kitchen features cabinets with crown moulding, recessed lighting, stainless steel appliances, and granite counters. Continue upstairs to find the carpeted primary bedroom offering an ensuite with dual sinks, a make-up desk, and a walk-in closet. The private backyard with artificial turf, an attached pergola, and pavers is perfect for alfresco dining, entertaining, or merely unwinding after a long day. Don't let this opportunity slip by!

4275 Ponderosa Trail Wickenburg, AZ 85390

$469,000
2 Beds
2 Baths
1,866 SqFt
Status Active
MLS # 6687915
Property Type Single Family Residence
Price Type --
Experience comfort and style in this unique two bed, 2 bath treasure in Wickenburg Ranch! Step inside to discover a well-appointed interior with ample space for both relaxation and productivity. Featuring a spacious office/den that can easily transform into a third guest room for visitors or family! A large 2 car garage is equipped with wall to wall storage cabinets, and there is another spacious golf cart garage as well! Outside, the fully fenced backyard is an oasis, perfect for outdoor gatherings, pets, gardening, or simply enjoying the sunshine and magnificent star filled nights. Nestled in the desirable Wickenburg Ranch community, a beautiful and vibrant community awaits you

11832 S Magic Stone Drive Phoenix, AZ 85044

$469,000
2 Beds
2 Baths
1,789 SqFt
Status Active
MLS # 6688359
Property Type Single Family Residence
Price Type --
Golf Course Lot AND mountain views....This Ahwatukee gem is in a 55+ community. This turnkey home is being sold ''as-is'' its fully FURNISHED at no monetary cost if buyer wishes. It has has been updated with New roof, AC unit, Flooring, and Kitchen. The brick fireplace in the eat in Kitchen brings a cozy feeling while looking at the Mountain Views and Golf course. Relax at happy hour time on the enclosed outdoor patio. With Ahwatukee Rec Center you will have swimming, pickelball, workout facility, and activities to keep you busy. Come enjoy living in an active community!

2802 E Dahlia Drive Phoenix, AZ 85032

$469,000 - 3Br/2Ba -  for Sale in Palo Verde East, Phoenix
Open House
New
$469,000
3 Beds
2 Baths
1,777 SqFt
Status Active
MLS # 6688385
Property Type Single Family Residence
Price Type --
Welcome to your charming oasis in the heart of Phoenix Arizona! This delightful single-story home offers comfort and convenience in every corner. Situated on a generous north-south facing lot, with an RV gate and no HOA, this property provides ample space for all your outdoor activities and storage needs. Step inside to discover a thoughtfully updated interior, featuring three cozy bedrooms and two bathrooms. The bathrooms have been tastefully renovated, showcasing modern showers and fixtures, adding a touch of contemporary style to the home. Entertain effortlessly in the spacious living area, flooded with natural light and offering a warm and inviting atmosphere for gatherings with family and friends. The kitchen is a chef's delight, boasting stainless stee appliances, plenty of cabinet space, and sleek countertops, making meal preparation a breeze. Outside, soak in the stunning mountain views from the privacy of your backyard, perfect for enjoying morning coffee or hosting summer barbecues. With a brand new roof backed by a 10-year warranty and a newer HVAC unit, this home offers both peace of mind and energy efficiency. Parking is a breeze with the attached two-car garage, providing secure storage for your vehicles and belongings. Don't miss out on the opportunity to call this lovely house your home. Schedule your showing today and start living the relaxed Arizona lifestyle you've been dreaming of!

13256 N 38th Place Phoenix, AZ 85032

$468,999
3 Beds
2 Baths
1,240 SqFt
Status Active
MLS # 6643265
Property Type Single Family Residence
Price Type --
Welcome to this breathtakingly remodeled home, a true gem that blends modern luxury with unparalleled convenience. Situated just a mile east of SR 51, this home offers swift access to major roads and urban amenities. A short stroll down the street leads to the lush expanses of Indian Bend Park, providing a perfect setting for outdoor recreation and relaxation. Perfect for New Beginnings. This home isn't just a residence; it's a lifestyle choice. Whether you're looking for a peaceful family haven or a vibrant social hub, this property caters to all. It is the perfect way to start your new year in style.

18755 E Elizar Drive Gold Canyon, AZ 85118

$468,995
3 Beds
2.5 Baths
2,070 SqFt
Status Active
MLS # 6695197
Property Type Single Family Residence
Price Type --
Entrada del Oro in the Superstition Mountains: A serene desert escape with breathtaking, rugged beauty. Perfect for sunrise and sunset admirers.

40258 W Michaels Drive Maricopa, AZ 85138

$468,995
4 Beds
2 Baths
2,370 SqFt
Status Active
MLS # 6695514
Property Type Single Family Residence
Price Type --
You'll find plenty to love about the Raleigh plan! The center of the home boasts a large gourmet kitchen with a convenient center island and walk-in pantry, which flows into an open-concept dining room and great room. The owner's suite is adjacent, with a private bath and a walk-in closet. There are three additional bedrooms and a bath off the great room and off the entry is a private study. Outside, enjoy your corner lot and large covered patio!

18740 E Elizar Drive Gold Canyon, AZ 85118

$468,995
3 Beds
2.5 Baths
1,930 SqFt
Status Active
MLS # 6679862
Property Type Single Family Residence
Price Type --
Entrada Del Oro..... Entrance to Gold! Charming 3BR/2.5BA home! The back yard offers picture perfect views of Superstition Mountains and is the ideal place to enjoy evening sunsets. Beautiful Laminate flooring throughout with carpet in the bedrooms, kitchen comes with GE kitchen appliances & Quartz counter tops, two tone interior paint. The front yard comes desert landscaped and driveway is complete with pavers, make this home yours today!

19551 W Cambridge Avenue Buckeye, AZ 85396

$468,995
4 Beds
3 Baths
2,070 SqFt
Status Active
MLS # 6688597
Property Type Single Family Residence
Price Type --
Explore this thoughtfully designed Slate home, ready for quick move-in on a homesite boasting front yard landscaping and driveway pavers. Included features: an inviting covered entry; an impressive kitchen layout offering 42'' cabinets, stainless-steel appliances, quartz countertops, a center island and a roomy pantry; an open dining area; a spacious great room; a lavish primary suite showcasing a generous walk-in closet and a private bath with cultured marble countertops; a convenient laundry; a covered patio and a 2-car garage. This home also offers stone tile flooring, additional windows and ceiling fan prewiring in select rooms.

19542 W Cambridge Avenue Buckeye, AZ 85396

$468,995
4 Beds
3 Baths
2,070 SqFt
Status Active
MLS # 6688608
Property Type Single Family Residence
Price Type --
Explore this dynamic Slate home, ready for quick move-in on a homesite boasting front yard landscaping and driveway pavers. Included features: an inviting covered entry; a well-appointed kitchen layout offering 42'' cabinets, stainless-steel appliances, quartz countertops, a center island and a roomy pantry; an open dining area; a spacious great room; an impressive primary suite showcasing a generous walk-in closet and a private bath with cultured marble countertops; a convenient laundry; a covered patio and a 2-car garage. This home also offers stone tile flooring, additional windows and ceiling fan prewiring in select rooms.

24075 W Pecan Road Buckeye, AZ 85326

$468,990
4 Beds
3.5 Baths
3,020 SqFt
Status Active
MLS # 6680414
Property Type Single Family Residence
Price Type --
Just over 3000 sq ft, this floorplan has It all. 4 bedrooms, 3.5 baths, a den downstairs, a half bath downstairs, a loft upstairs, and a 3-car tandem garage! This home offers so much space and a beautiful open concept. The outside has a Craftsman style exterior with included desert landscape. You walk into an open space with wood look plank tile throughout. There is a separate carpeted den area to be utilized as needed. The open concept living, kitchen, and dining area downstairs is great for entertaining. The gorgeous 4 panel sliding glass door that leads you to your outdoor covered patio provides an indoor/outdoor living space with a large backyard area. This home features our Minimalist design package that includes Crisp Stria quartz kitchen counter tops, with Fairview Stone Gray cabinets, Arctic White stacked kitchen backsplash, an undermount single bowl kitchen sink, matte black finish plumbing fixtures, stainless-steel appliances, and much more. Right now, Ashton Woods is pleased to include ALL APPLIANCES in this home, making your move-in process seamless. Upstairs has a spacious loft for additional living space, along with 4 bedrooms, 3 full baths, and laundry. Not only is the laundry room perfectly located for a growing family, right now we're including matching washer & dryer in this move-in ready home. The primary room has a large walk-in closet, double sinks, a large walk-in shower, and an additional linen closet for extra storage. The 3 additional bedrooms all have spacious walk-in closets as well. Great location close to dining, freeways, dog park and entertainment.

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