Recap of Last Week
Average mortgage rates among lenders started last week off slightly worse before ending the week just slightly better, mostly in the form of lower closing costs or lower points needed to get an improved rate.
Mortgage Rate Forecast: Rates will remain low, but could end the week slightly worse 👎
This Weeks Forecast
Rates should remain low this week, with little volatility to worry about. However, rates could pull back slightly from recent levels as the week progresses. Since mortgage rates hover at or near record lows, there’s not much room to go lower, making it a great time to buy a home or consider refinancing.
🏡 What’s affecting rates this week:
Economic data: Jobs data comes out this week, and could cause some short term volatility in rates on Friday. The data is likely to point to the economic recovery weakening, helping keep rates low when the dust settles.
Economic stimulus: The Fed continues to buy Treasuries and mortgage bonds, helping to keep rates stable and low.
Stimulus package: Although Republicans and Democrats continue to be far apart on a fifth round of stimulus, when a deal is announced as being likely it could pressure rates slightly higher as debt supply would increase to pay for the stimulus.