This Weeks Mortgage Forecast 07/27/2020
Recap of Last Week
Average mortgage rates among lenders ended the week just slightly better, mostly in the form of lower closing costs or lower points needed to get an improved rate.
Mortgage Rate Forecast
Rates will remain low, could improve slightly
As mortgage rates hover at or near record lows, there’s not much room to go lower, making it a great time to buy a home or consider refinancing. Rates should remain low this week, with little volatility to worry about.
What’s affecting rates this week:
The Fed: The Fed continues to buy Treasuries and mortgage bonds, helping to keep rates stable and low. There will be a Fed meeting this week, and the Fed is expected to leave policy rates unchanged. The Fed is not expected to make any announcements regarding the bond buying program, so should have little effect on mortgage rates and pricing this week.
Economic data: Economic data this week is expected to show the economic recovery is stalling, helping keep rates low.
Application volume: Due to low rates, lenders are at or near capacity in processing and underwriting, and it is possible some lenders could raise rates to slow down volume. Discuss these risks with your mortgage professional.