For the week of March 08, 2021

Recap of last week: Rates were slightly worse
Average mortgage rates improved slightly for the first few days of last week before moving higher later in the week after Fed Chair Jerome Powell failed to assure markets that the Fed would work to keep inflation in check.

Mortgage Rate Forecast: Rates likely volatile and could get worse
Average mortgage rates this week will likely be volatile, not only changing from day-to-day but with lenders often changing rates and pricing in the middle of the day based on market performance. Mortgage rates are based on the pricing of mortgage backed securities, which are traded on the bond market, and bonds are experiencing higher than normal volatility as the economy continues to improve.

What's affecting rates this week:
- Stimulus package: President Biden's $1.9 trillion stimulus package will likely pass this week, and we could see rates react to the news.
- Economic data: A full week that includes data on consumer and wholesale inflation, as well as multiple Treasury auctions that could all cause rate volatility this week.
- 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.