For the week of October 19th, 2020
Recap of last week: Rates slightly better
Average mortgage rates improved slightly through the week last week but ran out of steam on Friday, pulling back just a bit to end the week.
Mortgage Rate Forecast: Rates may get worse
Average mortgage rates this week could once again be more volatile than normal, especially with talk that an economic stimulus package could possibly be passed before the election. 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 have any great effect on 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: Mortgage bonds (the bonds that lenders base mortgage rates on) look like they could struggle to improve this week, pointing to slightly worse rates as the week progresses.
