For the week of November 8th, 2021
Recap of last week: Rates slightly better
Average mortgage rates ended last week slightly better, with most of the gains coming on Friday. Wednesday saw some volatility after the Fed meeting and press conference, as we expected, but Friday's improvement to rates despite strong jobs data was a surprise.
Mortgage Rate Forecast: Rates should remain low
Average mortgage rates are not likely to improve much, but should remain low this week. Wednesday could see rates move depending on the inflation data that comes in, and the bond market (and most lenders) will be closed on Thursday to observe Veterans Day.
What's affecting rates this week:
- Economic data: Consumer and wholesale inflation data comes out the middle of this week, and along with a couple of Treasury auctions could case rates to move slightly from day to day.
- Fed stimulus: The Fed continues to buy Treasuries and mortgage bonds, helping keep mortgage rates low. Markets are now prepared for the Fed to begin reducing bond purchases in November, and to continue reducing them into 2022.
- Veterans Day: Bond markets will be closed on Thursday, and most lenders won't issue new rates that day. You can check with your mortgage professional to find out if they will.
