For the week of October 18th, 2021
Recap of last week: Rates slightly worse
Average mortgage rates ended the week just slightly worse, as concerns about inflation pushed yields higher. Overall rates remained low though, with only a small increase in rebate pricing - the credit you get towards closing costs from your lender, or the fee you pay to get a lower rate, often called 'points'.
Mortgage Rate Forecast: Rates will remain low but unlikely to improve
Average mortgage rates are not likely to get much worse this week, but are also unlikely to improve from here. Rates are slowly creeping higher as the economy continues to recover and we get closer to the Fed tapering back bond purchases that have kept rates low during the pandemic.
What's affecting rates this week:
- Economic data: Although there is a lot of housing data this week, there is little data that should have a direct impact on mortgage rates.
- Inflation concerns: Continued concerns about inflation could pressure rates higher this week.
- 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.
