For the week of July 26, 2021
Recap of last week: Rates improved slightly
Average mortgage rates improved to start the week, as stocks worsened and investors looked to the safety of bonds. Although stocks did recover and ended the week with new highs, mortgage bonds performed well and helped to keep rates near recent best levels.
Mortgage Rate Forecast: Rates could be volatile
Average mortgage rates this week will remain low, but could move either direction or not much at all depending on what happens with this week's Fed meeting. This is a good week to discuss your particular rate situation with your mortgage professional, who can give you proper insight and advise if now is the time to lock in your interest rate.
What's affecting rates this week:
- Fed meeting: The Fed meets this week and will make a policy statement on Wednesday. Although the Fed will not move the fed funds rate, mortgage rates may get better or worse depending on comments about when and how it will taper bond purchases and how investors react.
- Fed press conference: Fed Chair Jerome Powell will hold a press conference on Wednesday, and it could cause movement in rates.
- Economic data: There is lots of data this week, including housing reports, but only a few releases have potential to affect rates.
