Recap of Last Week
Rates went up
Average mortgage rates among lenders ended the week much higher, after an unexpected fee was added to all conventional refinances by the Federal Housing Finance Agency. The fee caused rates to increase across the board, even to purchase mortgages.
This Weeks Forecast
Rates should stabilize
Average mortgage rates aren’t likely to go up more, but may not improve much this week either. Despite the sudden increase, rates are still near record lows and it is still a great time to consider buying or refinancing. Last week’s surprise fee announcement and sudden rate increase is a great example of why you should work closely with a local mortgage professional, who can help make sure you still get a low rate during turbulent times.
What’s affecting rates this week:
Economic stimulus: The Fed continues to buy Treasuries and mortgage bonds, helping to keep rates low.
FHFA Fee: The FHFA’s fee, announced after-hours on Wednesday, unexpectedly pushed rates higher overnight last week and will continue effecting rates this week.
Market technicals: After losing ground and contributing to rising rates last week, mortgage bonds look ready to level off this week and maybe even improve slightly, helping future rates.