For the week of September 14th, 2020
Recap of last week: Rates slightly better
Average mortgage rates among lenders were slightly better than the previous week, but the improvement was mainly in better rebate pricing (the credit a lender gives towards closing costs or the cost to buy down to a better rate).
Mortgage Rate Forecast: Rates will remain low
Average mortgage rates will remain low this week, but are likely to end the week near the same levels. With a Fed meeting and lots of economic data, we could see some small movements from day-to-day, but rates shouldn't move too much one way or the other.
What's affecting rates this week:
- Economic data: Despite no data on Monday, the rest of the week has a lot of economic data that could cause small movements in the underlying markets that control mortgage rates.
- Economic stimulus: The Fed continues to buy Treasuries and mortgage bonds, helping to keep rates stable and low.
- Fed Meeting: The two-day Federal Open Market Committee meeting concludes Wednesday with a Fed policy and rate statement, and is the event most likely to cause any movement in rates this week.
- FHFA Fee: A government fee from the Federal Housing Finance Agency that increases the costs of a refinance. Discuss this one with your mortgage professional.
