Recap of Last Week
Rates were slightly worse
Mortgage rates rose slightly last week compared to the week before, but were still near the average rates seen for the month. High unemployment and a weakening economy due to the COVID-19 pandemic kept rates low last week.
For the week of April 20, 2020
Rates likely to be unchanged or maybe slightly worse
Mortgage rates should remain stable, meaning we could see small movements up or down but are not likely to see a large move either way. For some borrowers rates will remain the same but may have higher closing costs or points. If you’re looking at closing soon, be sure to discuss your unique situation with us to decide if now is a good time for you to lock in your rate.
What’s affecting rates this week:
The Fed: Fed bond buying (called quantitative easing) is helping to stabilize rates and is keeping rates low.
Forbearance requests: Borrowers requesting forbearance from mortgage payments are causing liquidity concern among mortgage servicers, pressuring rates higher. If you’re considering forbearance, talk to a mortgage professional first to fully understand the pros and cons.
COVID-19: Concerns over the economic fallout of the crisis continue to help keep rates low.
Info from: Rate Advantage
