For the week of April 13, 2020
Recap of last week: Rates were slightly improved
On average, mortgage rates improved last week, with some borrowers seeing slightly better rates while others just saw better closing cost rebate pricing. Rates were helped by Fed quantitative easing, and were more stable than weeks past.
Mortgage Rate Forecast: Rates likely to be unchanged or slightly worse
Mortgage rates could be pushed slightly higher this week, pressured by market conditions making it harder to securitize and service mortgages after they have been originated and processed. Rates will still remain low though, and anyone considering buying a home or refinancing should talk about their unique situation with a mortgage professional for better guidance.
What's affecting rates this week:
- The Fed: Fed bond buying (called quantitative easing) is helping to stabilize rates and is keeping rates low.
- Forbearance requests: Borrowers requesting forbearance from mortgage payments are causing liquidity concern among mortgage servicers, pressuring rates higher. If you're considering forbearance, talk to a mortgage professional first to fully understand the pros and cons.
- COVID-19: Concerns over the economic fallout of the crisis continue to help keep rates low.
