For the week of December 6th, 2021
Recap of last week: Rates were erratic but slightly better
Average mortgage rates last week were as erratic as expected, with rates remaining relatively stable but rebate pricing fluctuating day-to-day. Rebate pricing is the credit you get from your lender towards closing costs, or the fee you pay to get a lower rate - often called 'points'.
Mortgage Rate Forecast: Rates could slightly worsen
This week we expect rates to remain low, with variations in day-to-day rebate pricing as markets continue to deal with news about omicron and react to concerns about inflation and the Fed raising policy rates sooner in 2022. Rates could creep up slightly later in the week.
What's affecting rates this week:
- Economic data: Treasury auctions could have a small effect on rates this week, along with data on inflation that will be released on Friday.
- Omicron: News on the latest covid variant will play a role in rates this week as investors assess the risk to the global economic recovery.
- The Fed: Although the Fed's meeting isn't until next week, mortgage rates could be affected by market speculation on what the Fed will say next week regarding tapering bond purchases at a quicker pace and when the Fed projects the first policy rate increase in 2022.
