Recap of Last Week
Average mortgage rates among lenders ended the week basically unchanged, although rates were slightly higher at the beginning of the week after Memorial Day.
Mortgage Rate Forecast
Rates likely to remain low with a good shot at slightly improving 👍
Mortgage rates will stay low this week, and could improve slightly if mortgage bonds react favorably to technical conditions. However, if bonds fail to improve, mortgage rates could get slightly worse.
🏡 What’s affecting rates this week:
The technicals: Mortgage bond technicals will come into play this week as mortgage bonds will be forced to break above or below the convergence of the 25 and 50-day moving averages. If bonds improve, rates will get slightly better. If bonds meet technical resistance, rates could get slightly worse.
Economic data: A quiet week for economic data, other than Friday’s jobs data, which is not likely to have much of an effect on mortgage rates.
The Fed: The Fed continues to buy Treasuries and mortgage bonds, helping to keep rates stable and low.
Trade with China: Tensions with China are escalating, and China has halted some U.S. farm imports that were agreed upon in the phase one trade deal. Trade tensions help keep rates low.