For the week of June 15, 2020
Recap of last week: Rates improved
Average mortgage rates among lenders improved last week as we had forecast. Rates were helped by the Fed's commitment to continue buying bonds at the current pace, a process known as quantitative easing, which is used to keep interest rates low.
Mortgage Rate Forecast: Rates will remain low but could slip
Mortgage rates could slip a little this week, after averaging all time best levels last week. While rates aren't likely to go up much, we could see smaller lender closing cost credits or higher fees to get the lowest rates. It remains a great time to buy a home or possibly consider a refinance.
What's affecting rates this week:
-The Fed: The Fed continues to buy Treasuries and mortgage bonds, helping to keep rates stable and low. At last week's Fed meeting the Fed committed to maintaining these purchases at current levels, which helped rates improve last week.
- Covid concerns: Stocks have been falling on concerns that a second way of the pandemic is possible and could hurt the economic recovery, which has also helped bonds improve. When bonds improve, rates often do as well.
- Economic data: Although a lot of housing data comes out this week, it isn't likely to affect mortgage rates.
