For the week of May 18, 2020
Recap of last week: Rates improved slightly
Average mortgage rates among lenders worsened early in the week before improving steadily to end the week slightly better.
Mortgage Rate Forecast: Rates likely to remain low
Mortgage rates are likely to stay low this week, and could get slightly worse to begin the week before ending the week at or near the same rates and pricing the week started with. For some borrowers rates will remain the same but they may see slightly higher or lower closing costs or points at different times during the week.
What's affecting rates this week:
- Housing data: Housing data this week is helpful for gauging where the housing market is headed, but is not likely to have a direct effect on rates.
- Economic data: No data this week likely to affect pricing.
- The Fed: The Fed continues to buy Treasuries and mortgage bonds, helping to keep rates stable and low. Minutes from the Fed's last meeting will be released this week as well, and investors will look for signs of future Fed action, but it shouldn't have much effect on rates.
- Economy reopening: Investors are monitoring economic recovery and COVID-19 activity as states continue to reopen.
- Memorial Day: Lenders may set rates more conservatively over the long weekend.
