For the week of November 30th, 2020
Recap of last week: Rates low but unchanged
Average mortgage rates last week remained largely unchanged as markets and lenders closed for Thanksgiving.
Mortgage Rate Forecast: Rates likely to improve
Average mortgage rates this week are likely to improve at least slightly from last week, but could still vary day-to-day. Most improvements will come in the form of better rebate pricing, the credit a lender gives you towards your closing costs or the cost to obtain a lower rate, usually referred to as 'points'.
What's affecting rates this week:
- Covid-19: An increase in covid cases and hospitalizations has some areas of the country going back to lockdowns or implementing business curfews. The effect will be bad for the economic recovery, helping 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 stimulating the economic recovery.
- Economic data: There isn't a lot of data this week, but Friday's jobs data could impact rates and pricing.
- Weak economy: Increased unemployment and reduced consumer spending, especially in the holiday season, are likely to weaken the economy and see rates benefit.
