For the week of November 9th, 2020
Recap of last week: Rates improved
Average mortgage rates were slightly worse to start last week, but ended the week improved as the election results unfolded and markets were no longer concerned about Democrats getting control of both houses of Congress and the presidency. Last week's Fed meeting and economic data had little effect on rates, as expected.
Mortgage Rate Forecast: Rates likely to be worse
Average mortgage rates this week are already worse than they were Friday, on positive news about covid vaccines. Stocks rallied, and bond prices dropped, which is bad for mortgage rates and rebate pricing. Although it is early in the week and we are likely to see rates end the week at least slightly worse than last week, rates remain near record lows making it a great time to buy or refinance.
What's affecting rates this week:
- Veterans Day: Markets will be closed on Wednesday
- Covid 19: Positive news about effectiveness of potential vaccines has caused rates to rise, at least temporarily, as a vaccine will speed up the economic recovery and stronger economy will push rates higher.
- Economic stimulus: The Fed continues to buy Treasuries and mortgage bonds, helping to keep rates low and limiting how far rates should rise in the near term.
