For the week of July 12, 2021
Recap of last week: Rates improved
Average mortgage rates were better last week as sentiment shifted in favor of bonds, setting the stage for rates to improve. Concerns about inflation have seemed to evaporate and concerns about global reflation have taken their place, slowing down stocks but helping bonds and keeping rates low.
Mortgage Rate Forecast: Rates will remain low
Average mortgage rates this week will remain low, but could move either way depending on how traders react to this week's economic data and how market sentiment plays out. Sometimes we find ourselves at a crossroads, like now, and we have to be reactionary to how the markets move during the week. This week is a great time to stay in touch with your mortgage professional for guidance.
What's affecting rates this week:
- Fed testimony: Fed Chair Jerome Powell will provide his semiannual report to Congress about the state of the economy, and his comments could cause some movement in rates this week.
- Economic data: A busy week for economic data, including consumer inflation data that could pressure rates for the week. We will also see wholesale economic data, and a few Treasury auctions.
- Investor sentiment: A distinct shift in investor risk tolerance is helping rates.
