For the week of June 8, 2020
Recap of last week: Rates rose slightly
Average mortgage rates among lenders worsened last week, with the most damage coming on Friday as jobs data came in much stronger than expected, pointing to a stronger economic recovery.
Mortgage Rate Forecast: Rates likely to improve
Mortgage rates are likely to improve this week, rebounding from last week's poor showing, as long as mortgage bonds aren't adversely affected by this week's Fed meeting statement and press conference. We aren't likely to see all of the losses gained back at once though, it will likely take some time. Still, mortgage rates remain near record lows making it a great time to discuss refinancing or to consider buying a home.
What's affecting rates this week:
-The Technicals: Mortgage rates are based on bond market performance, and bonds are due for a rebound after a rough showing last week, which could help rates improve again.
- The Fed: The Fed continues to buy Treasuries and mortgage bonds, helping to keep rates stable and low. The Fed will release their policy statement on Wednesday with a press conference to follow, and depending on what they say it could help or hurt rates this week.
- Economic Reopening: More states reopening, improving the economic outlook.
