For the week of January 4th, 2021

Recap of last week: Rates basically unchanged
Average mortgage rates last week remained low but were basically unchanged, as both lenders and markets closed early on Thursday and all day Friday for New Years.

Mortgage Rate Forecast: Rates likely to remain low
Average mortgage rates will likely remain low, but are not likely to go much lower this week as markets return to normal volume levels after the holidays. Although there is not a lot of risk of rates rising in the near term, there is also not a lot in favor of seeing rates improve much from here. You may want to take the advice of your local mortgage professional for locking or floating based on your individual circumstances.

What's affecting rates this week:
- Lender capacity: Lenders continue to struggle with volume constraints, making it unlikely they would push rates significantly lower this week, although small movements are possible.
- Economic stimulus: The Fed continues to buy Treasuries and mortgage bonds, helping to keep rates low and generally stable.
- Economic data: A few smaller reports unlikely to have any effect on rates, but Friday's jobs data could cause some movement.