For the week of June 28, 2021
Recap of last week: Rates improved slightly
Average mortgage rates improved slightly last week, as Fed Chair Jerome Powell once again helped calm concerns about inflation in his testimony before Congress. Inflation is bad for rates, so his comments helped rates improve slightly.
Mortgage Rate Forecast: Rates will remain low
Average mortgage rates this week are not likely to move too much higher or lower, but you may want to be careful near the end of the week as we get jobs data and markets will close early for a long holiday weekend. We could see some volatility in rebate pricing, the credit you get towards closing costs from your lender, or the fee you pay to get a lower rate, often called 'points'. This is a good week to check in or stay in touch with your mortgage professional to discuss your unique situation.
What's affecting rates this week:
- Fed stimulus: The Fed continues to buy Treasuries and mortgage bonds, helping keep mortgage rates low.
- Economic data: Friday brings this month's jobs data, and could cause rates and rebate pricing to move in reaction to the strength of the data.
- Holiday market closings: Bond markets will close at 2pm Eastern Friday and be closed Monday in Independence Day. Lenders will also be closed.
