For the week of November 16th, 2020
Recap of last week: Rates worsened
Average mortgage rates last week were slightly worse than the week before, although not significantly. Rates got worse early in the week as mortgage bonds weakened on positive covid vaccine news. A vaccine is expected to help in the economic recovery, which will pressure rates higher when it happens.
Mortgage Rate Forecast: Rates may improve slightly
Average mortgage rates this week will remain low, and could possibly improve slightly as the week progresses but will likely not improve dramatically. We could see some up-and-down movement from day to day, making it a good idea to check in with your mortgage professional this week.
What's affecting rates this week:
- Possible lockdowns: An increase in covid cases and hospitalizations has some areas of the country going back to tightening restrictions and lockdowns, and implementing business curfews. The effect will be bad for the economic recovery, which helps to keep rates low for the near term.
- 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.
- Economic data: The data on the calendar this week is not likely to have a big effect on rates.
