For the week of May 4, 2020
Recap of last week: Rates improved slightly
Average mortgage rates among lenders improved slightly last week compared to the week before, but most consumers may have only seen slightly better closing costs rather than actual rate improvement.
Mortgage Rate Forecast: Rates likely to remain low
Mortgage rates are likely to stay low, but may see small movements up or down through the week. For some borrowers rates will remain the same but they may see slightly higher or lower 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:
- Economic data: Friday brings jobs and wages data, but markets already know the labor market is greatly affected by the COVID-19 pandemic and weakness is not likely to cause much movement in rates.
- The Fed: Quantitative easing continues, with the Fed buying mortgage bonds and Treasuries to help keep rates stable and low.
- Trade tensions: Speculation that the COVID-19 virus could have come from a lab in Wuhan is escalating tensions with China and investors are concerned we may see a new trade war break out.
