For the week of May 24, 2021
Recap of last week: Rates basically unchanged
Average mortgage rates last week were basically unchanged to end the week, after improving slightly early in the week. The release of last month's Fed meeting minutes on Wednesday caused rates to get slightly worse, giving back the early improvements. Rates still remain low.
Mortgage Rate Forecast: Rates will remain low, could improve slightly
Rates this week will remain low, and could improve slightly depending on how markets feel about further inflation. Bond markets will close early on Friday, and will be closed on Monday in observance of Memorial Day.
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: A few Treasury auctions this week, it is possible they could have a small effect on rates and pricing. Thursday's GDP data is not a concern, but Friday we get the Fed's favorite gauge of inflation, the personal consumption expenditures, and that could cause a bit of volatility on a day when the bond market closes early (2pm Eastern).
- Holiday weekend: Pricing tends to be conservative on the Friday before a long holiday weekend, and lenders will be closed on Monday for Memorial Day.
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