For the week of March 01, 2021
Recap of last week: Rates were worse
Average mortgage rates got significantly worse last week, after the threat of a strongly improving economy and inflation continued to pressure rates higher.
Mortgage Rate Forecast: Rates could be volatile
Average mortgage rates this week are hard to forecast, and are overdue for a rebound from recent rate jumps but may get a bit worse before we see improvement. Markets are jumpy, and investors are still trying to price in concerns about inflation and a possibly overheating economy as the pandemic subsides and consumer spending increases. It's an important time to stay in touch with your mortgage professional, and to discuss your unique situation with them.
What's affecting rates this week:
- Stimulus package: President Biden's $1.9 trillion stimulus package was approved in the House and must now clear the Senate before being signed by Biden. The stimulus package has helped pressure rates higher in recent weeks.
- Economic data: Most of this week's data shouldn't affect rates, but Friday's jobs data could cause some rate movement.
- Market volatility: Investors are trying to prepare for possible increases to inflation and a stronger than expected economic recovery for 2021, pushing rates up in the process.
