For the week of February 15th, 2021
Recap of last week: Rates slightly worse
Average mortgage rates ended the week slightly worse after improving through the middle of the week.
Mortgage Rate Forecast: Rates likely to worsen
Average mortgage rates are likely to get worse this week, creeping up from all time lows. It is a good time to discuss locking in a rate with your mortgage professional and to see if it is an option. Although rates are creeping higher, they are still near all time lows and it remains a good time to consider buying or refinancing.
What's affecting rates this week:
- Stimulus package: President Biden's $1.9 trillion relief package is front and center now that the impeachment trial is over, and expectations that a bill will be passed soon are pressuring rates slightly higher.
- Economic data: Although this week has some economic and housing data, it isn't likely to be much of a market mover and shouldn't affect rates.
- Fed bond purchases: The Fed continues to buy Treasuries and mortgage bonds, helping to keep rates low and generally stable.
- Bond pricing: Lenders set mortgage rates based on the pricing of mortgage bonds, and bonds are worsening to levels we haven't seen in months, pointing to at least slightly higher rates.
