For the week of May 10, 2021

Recap of last week: Rates slightly improved
Average mortgage rates ended last week slightly better than the week began, although there was some volatility in rates on Friday after weaker than expected jobs data caused some market reaction. Most improvement was in rebate pricing, the credit you get towards closing costs from your lender, or the fee you pay to get a lower rate, often called 'points'.

Mortgage Rate Forecast: Rates will remain low and could improve a bit
Rates this week could improve, although we could see some volatility on Wednesday and Thursday when consumer and wholesale inflation data is released. Even if inflation data comes in strong enough to stop rates from improving, rates will remain low this week and are not in danger of moving significantly higher.

What's affecting rates this week:
- Fed stimulus: The Fed continues to buy Treasuries and mortgage bonds, helping keep rates low and stable.
- Economic data: Wednesday we get reports likely to show that consumer inflation is much higher than last year when the economy was basically shut down. Thursday we get wholesale inflation data which will also likely show higher inflation than last year. The inflation data could put some pressure on rates this week.

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