For the week of November 2nd, 2020
Recap of last week: Rates improved
Average mortgage rates improved overall for the week, with rates improving most through Wednesday before pulling back to end the week.
Mortgage Rate Forecast: Rates likely to be volatile
Average mortgage rates this week are hard to forecast, with many variables that could cause rates to fluctuate daily. While rates will remain low into 2021, this week we could see rates go up or down based on the elections, the meeting of the Fed, and economic data. Consumers looking to minimize risk may want to still consider locking and should talk it over with their mortgage professional.
What's affecting rates this week:
- Economic data: This week has lots of economic data, but the data most likely to affect mortgage rates is Friday's jobs data.
- Economic stimulus: The Fed continues to buy Treasuries and mortgage bonds, helping to keep rates low and limiting how far rates could rise. The Fed is unlikely to change policy rates at this week's meeting, but its policy statement could cause influence mortgage rates for the week.
- Elections Nov 3rd: Although the election is on Tuesday, it will take days to complete the count of all the votes, including millions of mailed in votes, and could contribute to rate volatility.
