For the week of July 19, 2021

Recap of last week: Rates improved slightly
Average mortgage rates worsened through the middle of the week before ending the week slightly better. Rates shrugged off increased consumer and wholesale inflation, calmed by Fed Chair Jerome Powell's testimony to Congress about the recovering economy and future Fed actions.

Mortgage Rate Forecast: Rates could improve
Average mortgage rates this week could improve, especially for cash-out refinances. This is a good week to discuss your particular rate situation with your mortgage professional, who can give you proper insight and advice if now is the time to lock in your interest rate. Even if we don't see rates improve, they will remain low this week.

What's affecting rates this week:
- Global economy: Concerns about a slowdown in the global economic recovery have pushed investors both overseas and domestically to seek shelter in safe havens (like mortgage bonds), which helps keep mortgage rates low.
- Peaking economy: There are concerns among investors that the economy has already peaked in its recovery, and that stocks are too optimistic. This also has investors seeking safety in bonds, helping rates.
- Economic data: There is no relevant economic data this week that should have an effect on rates.

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