For the week of July 06, 2021
Recap of last week: Rates improved slightly
Average mortgage rates improved slightly last week, despite stronger than expected economic data for jobs and wages that normally would have put some pressure on rates. The data came in mixed, with unemployment slightly higher and the pace of hourly earnings growth slowing. Markets and lenders closed early Friday for the holiday weekend and were closed on Monday.
Mortgage Rate Forecast: Rates will remain low
Average mortgage rates this week will remain low, and could even improve slightly. Concerns about the Fed tapering have ebbed a bit, opening the door for rates to improve a little bit in the near term. If concern grows though, we could see rates suffer, so stay in touch with your mortgage professional.
What's affecting rates this week:
- Fed stimulus: The Fed continues to buy Treasuries and mortgage bonds, helping keep mortgage rates low. As long as concerns about the Fed reducing bond purchases remain at bay, we should see rates remain low and possibly improve slightly this week.
- Economic data: A quiet holiday shortened week for data, Wednesday's release of last month's Fed meeting minutes could be a concern if investors find Fed officials were talking more about tapering bond purchases.
