For the week of November 23rd, 2020
Recap of last week: Rates improved slightly
Average mortgage rates last week improved slightly, as concerns over increasing covid numbers and subsequent lockdowns and slowdowns pushed investors to the safety of bonds.
Mortgage Rate Forecast: Rates remain low but basically unchanged
Average mortgage rates this week will remain low heading into the Thanksgiving holiday, and are unlikely to get significantly better or worse. The outlook heading into December is that rates may continue to improve in small increments, although some days will continue to have better pricing than others.
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.
- Thanksgiving: Bond markets will be closed on Thursday and will close early on Friday.
