For the week of May 26, 2020
Recap of last week: Rates remained low
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 but could worsen slightly
Mortgage rates are likely to stay low this week, but could get slightly worse to end the week. 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:
- The technicals: Bond technical indications signal slightly worse rates and pricing could be possible this week as mortgage bonds break the 50-day moving average.
- 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: Lots of economic data this week, including data on GDP and inflation, could affect rates slightly.
- The Fed: The Fed continues to buy Treasuries and mortgage bonds, helping to keep rates stable and low.
- Economy reopening: Investors are monitoring economic recovery and COVID-19 activity as states continue to reopen, and investor optimism could pressure rates slightly this week as stocks benefit.
