For the week of October 26th, 2020
Recap of last week: Rates got worse
Average mortgage rates worsened through the week, contrary to some headlines that tracked old data and said rates hit a new low. Still, although rates did get slightly higher, it wasn't a big move.
Mortgage Rate Forecast: Rates could see volatility, but could improve
Average mortgage rates this week could show some volatility, depending on how markets trade heading into the elections next week. Rates could improve a bit though after losing ground last week, but the upside potential is limited. 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: The week does have a lot of economic data and activity, which could play a small role in rates moving from day to day.
- Economic stimulus: The Fed continues to buy Treasuries and mortgage bonds, helping to keep rates low and limiting how far rates could rise.
- Stimulus talks: A stimulus deal still not done, now considered extremely unlikely to be done before the election.
- Elections Nov 3rd: Speculation of who will win the presidential election as well as House and Senate seats could cause some volatility this week.
