Recap of Last Week
Rates unchanged. Average mortgage rates among lenders were slightly better midweek before ending the week basically unchanged from the week before.
This Weeks Forecast
Rates will remain low but not likely to go much lower yet
Mortgage rates will remain low this week, possibly improving slightly sometime during the week. However, 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: There is no relevant economic data this week to influence mortgage rates.
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.