For the week of March 15, 2021
Recap of last week: Rates were slightly worse
Average mortgage rates ended last week slightly worse as traders and markets reacted to the passing of the American Rescue Plan stimulus bill with concerns of increasing inflation and a possibly overheating economy.
Mortgage Rate Forecast: Rates likely volatile and could get worse
The big event this week will be the 2-day Fed meeting that concludes on Wednesday with a policy statement and press conference. Markets are likely to have a strong reaction to this month's meeting, as the Fed tries to defend its ultra-easy monetary policy outlook amid a quickening economic recovery and fears of inflation. Odds are high that we could see average mortgage rates continue the rising rate trend we've seen over recent weeks.
What's affecting rates this week:
- Fed meeting: The Fed will release its policy statement followed by a press conference this week, as traders look for signals of when the Fed will raise the fed funds rate or taper back bond purchases.
- Economic data: Most of this week's economic data isn't likely to cause any movements in rates.
- Bond yields: If bond yields continue to rise this week, it could be the precursor to increasing mortgage rates.
