For the week of August 2, 2021
Recap of last week: Rates improved
Average mortgage rates improved slightly on the week, after markets responded positively to the Fed's policy statement and to Fed Chair Jerome Powell's press conference afterwards. Investors don't seem too concerned about the timing of the Fed's tapering of bond purchases, which have kept rates low since the start of the pandemic.
Mortgage Rate Forecast: Rates likely to improve
Average mortgage rates this week are likely to improve at least a little bit, although we do need to worry about some volatility on Friday when the jobs data is released. Rates will remain low this week though, even if we do see a slight increase at the end of the week. Most day to day movement will likely be a change 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'.
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.
- Economic data: Not much on the calendar this week, and the only data that is likely to have an effect on mortgage rates is Friday's jobs data.
