For the week of September 21st, 2020
Recap of last week: Rates slightly worse
Average mortgage rates among lenders were slightly worse to end the week, especially for refinances as lenders implemented new Fannie Mae and Freddie Mac adverse market refinance fees. Details on this fee can be obtained from your local mortgage professional.
Mortgage Rate Forecast: Rates will remain low
Average mortgage rates will remain low this week, and could improve slightly from last week's levels. However, improvements are more likely to come in the form of improved rebate pricing, rather than in rates actually going much lower. Rebate pricing is the credit that a lender gives towards closing costs, or the cost to buy down to a better rate, often referred to as points. Be sure to discuss your unique situation with your local mortgage professional.
What's affecting rates this week:
- Economic data: There's no economic data this week that should influence mortgage rates.
- Economic stimulus: The Fed continues to buy Treasuries and mortgage bonds, helping to keep rates stable and low.
- Bond market technical indicators: The foundation for mortgage rates, mortgage bonds, look likely to improve this week which could help mortgage rates and pricing improve.
