For the week of April 27, 2020
Recap of last week: Rates were slightly better
Average mortgage rates among lenders improved slightly last week compared to the week before, helped by the Fed's bond purchase program and a stable mortgage bond market.
Mortgage Rate Forecast: Rates likely to remain low
Mortgage rates should remain stable, meaning we could see small movements up or down but are not likely to see a large move either way. For some borrowers rates will remain the same but may have higher closing costs or points. If you're looking at closing soon, be sure to discuss your unique situation with your mortgage professional to decide if now is a good time for you to lock in your rate.
What's affecting rates this week:
- The Fed: Holding its Federal Open Market Committee meeting, will release a statement on Wednesday but is not expected to raise or lower rates. Continued bond buying is keeping rates low.
- Forbearance requests: Borrowers requesting forbearance from mortgage payments are causing issues among mortgage servicers, pressuring rates higher. If you're considering forbearance, talk to a mortgage professional first to fully understand the pros and cons.
- Economic data: Although there's more data this week, it's not likely to cause much movement in rates.
