Recap of Last Week
Average mortgage rates among lenders ended last week basically unchanged, a nice surprise considering we expected rates might get slightly worse.
This Week’s Mortgage Rate Forecast
Mortgage rates will remain low this week, but are not likely to go much lower. Even if underlying market conditions dictate lower rates, lenders are at or near capacity and unable to handle an influx of new business that lower rates would bring. This means lenders are less likely to pass along any market gains at the moment, a good reason not to try and wait for lower rates. With rates at or near record lows, it is a great time to buy a home or consider refinancing.
What’s affecting rates this week:
The Fed: The Fed continues to buy Treasuries and mortgage bonds, helping to keep rates stable and low.
Economic data: A lot of economic data this week, including some housing data, but nothing that should cause rates to go up or down.
The coronavirus pandemic: Concerns about the increase in the number of new covid cases being reported, some states may slow down on re-opening which could causes the economic recovery to stall and is helping rates remain low.