For the week of October 12th, 2020

Recap of last week: Rates slightly worse
Average mortgage rates worsened last week, helped along by headlines that Congress was close to passing a stimulus plan.

Mortgage Rate Forecast: Rates may be volatile
Average mortgage rates this week could be more volatile than normal, making it harder to anticipate whether they will move higher or lower. That means it is a good week to stay in touch with your mortgage lender if you have a loan in process, or if you are thinking of getting a mortgage to buy a home or refinance.

What's affecting rates this week:
- Economic data: The week doesn't have any economic data that is likely to affect mortgage rates
- Economic stimulus: The Fed continues to buy Treasuries and mortgage bonds, helping to keep rates low.
- Stimulus talks: If a stimulus bill is agreed upon and looks likely to get passed before the elections, it would require more debt to be created to fund it, and could put some pressure on mortgage rates
- Bond market technical indicators: After losing ground last week, mortgage bonds (the bonds that lenders base mortgage rates on) look like they could continue to worsen this week. However, that could reverse when the bond market reopens on Tuesday.