For the week of May 11, 2020
Recap of last week: Rates remained unchanged
Average mortgage rates among lenders were slightly worse midweek before improving to end the week basically unchanged from the week before.
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 with a good chance of ending the week at least slightly better. For some borrowers rates will remain the same but they may see slightly higher or lower closing costs or points.
What's affecting rates this week:
- Economic data: Although there are reports on consumer and wholesale inflation, as well as retail sales that would normally influence rates, it's not likely we see any affect this week because of the weak economy due to businesses being shut down and stay at home orders.
- The Fed: Quantitative easing continues, and although the Fed is continuing to taper off mortgage bond and Treasury purchasing it is still helping to keep rates stable and low.
- Economy reopening: Investors are watching closely to see how local economies are recovering as states begin easing restrictions and allowing businesses to reopen.
