For the week of October 11th, 2021
Recap of last week: Rates slightly higher
Average mortgage rates crept up last week as markets reacted to lower unemployment and the likelihood that the Fed will begin reducing the bond purchases that have kept mortgage rates low for over a year.
Mortgage Rate Forecast: Rates likely to get worse
Average mortgage rates this week could continue to get worse during a holiday shortened week as markets react to both consumer and wholesale inflation data and retail sales reports. It is unlikely that we will see rates improve from here, so you may want to discuss the benefits of locking in a rate with your mortgage professional.
What's affecting rates this week:
- Economic data: A busy week for data, with both consumer and wholesale inflation as well as retails sales data that could affect rates. There are also a few Treasury auctions that investors may react to that could affect rates. Overall this week's economic data isn't likely to help rates improve.
- Fed stimulus: The Fed continues to buy Treasuries and mortgage bonds, helping keep mortgage rates low. However, rates are creeping up as investors prepare for the Fed to reduce the amount of bonds being purchased, with expectations that tapering could start in November.
