For the week of September 28th, 2020
Recap of last week: Rates slightly better
Average mortgage rates were slightly better by the end of the week, although not by much as rates remain near record lows.
Mortgage Rate Forecast: Rates will remain low
Average mortgage rates will remain low this week, although we could see some small movement day-to-day in rebate pricing. 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. Tough to tell which way rates may go this week, but whichever way we see it shouldn't be any large movement, as rates remain stable and low. It is a good week to stay in touch with your local mortgage professional.
What's affecting rates this week:
- Economic data: The second half of the week brings a lot of economic data, including jobs and wages data on Friday, that could cause daily movement for rates.
- Economic stimulus: The Fed continues to buy Treasuries and mortgage bonds, helping to keep rates stable and low.
- Bond market technical indicators: After improving last week, mortgage bonds start the week at a crossroads, and could either push for a new higher range or fall back which would bring slightly worse pricing.
