For the week of February 22, 2021
Recap of last week: Rates worse
Average mortgage rates got significantly worse last week, after the threat of a strongly improving economy and inflation pressured rates higher as anticipated.
Mortgage Rate Forecast: Rates likely to worsen
Average mortgage rates are likely to continue to get worse this week. It is a good time to discuss locking in a rate with your mortgage professional and to assess your options. Although rates are moving 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: The impending passage of President Biden's $1.9 trillion relief package continues to push rates higher as markets prepare for the influx of debt needed to fund the bill and the anticipation that it will contribute to overheating the economy and causing inflation (which is bad for rates).
- Economic data: Housing data being released this week will not affect rates, but GDP data, along with spending data and inflationary data late in the week could affect rates.
- Fed testimony: Fed Chair Jerome Powell has his semi-annual update on the economy hearings before Congress this week, and his words could cause some movements in markets, affecting rates.
