For the week of June 1, 2021
Recap of last week: Rates slightly improved
Average mortgage rates last week improved slightly to end the week, although the best rates were likely to be had midweek. Rate movement was small though, mainly improving rebate pricing. Rebate pricing is 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, could be volatile
Rates this week will remain low, however could improve slightly midweek before possibly getting worse on Friday when jobs data is released. It is a good week to stay in close contact with your mortgage professional.
What's affecting rates this week:
- Fed stimulus: The Fed continues to buy Treasuries and mortgage bonds, helping keep rates low.
- Economic data: Most data this week won't affect rates until we see Friday's jobs and wages data that could signal the Fed may have to discuss adjusting policy at this month's meeting, which could pressure rates higher when it happens.
- Technical indicators: We could see mortgage bonds improve ahead of Friday's economic data, which could help improve rates slightly.
- Short week: Markets were closed Monday for the holiday, leaving an action packed holiday shortened week.
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