This Weeks Mortgage Forecast 08/10/2020
Recap of Last Week
Rates slightly better 👍
Average mortgage rates among lenders ended the week unchanged to slightly better, although there were some fluctuations day to day.
This Weeks Forecast
Rates will remain low, but could end the week slightly worse 👍
Average mortgage rates are not at risk of rising anytime soon, but are not likely to drop significantly. Underlying market conditions are favorable that rebate pricing, the credit lenders give towards closing costs or the points paid to get a lower rate, could improve slightly as the week progresses. There are risks to floating though that should be discussed with your local mortgage professional.
What’s affecting rates this week:
Economic data: Data on wholesale and retail inflation will come out this week, along with Treasury bond auctions that could affect pricing on a daily level but won’t cause rates to rise overall.
Economic stimulus: The Fed continues to buy Treasuries and mortgage bonds, helping to keep rates stable and low.
Stimulus package: Although so far Democrats and Republicans have failed to come to a compromise on the next round of economic stimulus, it is likely both sides with continue to attempt to get a deal done despite President Trump’s executive orders attempting to continue current stimulus.
Info From: Rate Advantage