For the week of November 15th, 2021
Recap of last week: Rates slightly worse
Average mortgage rates were slightly worse to end the week, as markets responded to the strongest inflation reading in 30 years. Strong consumer demand combined with shortages caused by supply chain issues are causing both wholesale and consumer inflation, which will contribute over time to higher interest rates.
Mortgage Rate Forecast: Rates may worsen further
Average mortgage rates this week could continue to get worse, although we shouldn't see any big rate jumps all at once. Instead rates are likely to be back in the range we saw near the end of October, before the recent dip, reflecting the strong labor and economic conditions. Although rates are rising slightly, they remain low compared to historic averages and it is still a great time to buy a home or refinance.
What's affecting rates this week:
- Economic data: Mostly housing data this week, which doesn't really affect rates. Tuesday has some early morning reports that could influence rates for the week.
- 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.
