For the week of October 5th, 2020
Recap of last week: Rates basically unchanged
Average mortgage rates were basically unchanged by the end of the week, after being slightly worse midweek.
Mortgage Rate Forecast: Rates may worsen
Average mortgage rates could get slightly worse this week, although rates will still be near record lows. Rates shouldn't move too drastically, but we could see day-to-day movement making it a great time to stay in touch with your local mortgage professional.
What's affecting rates this week:
- Economic data: The week doesn't have a lot of data to worry about, Wednesday is the day most likely to see rates influenced by data.
- Economic stimulus: The Fed continues to buy Treasuries and mortgage bonds, helping to keep rates stable and low.
- President Trump's medical condition: Trump's diagnosis and recovery from COVID-19 has helped spark a stock rally and pressured bonds, pushing rates slightly higher.
- Bond market technical indicators: After improving last week, mortgage bonds are starting the week off worse and are poised to go lower, which would bring slightly worse rates or 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.
