For the week of December 14th, 2020
Recap of last week: Rates slightly improved
Average mortgage rates last week remained low, and in some situations were slightly better than the previous week.
Mortgage Rate Forecast: Rates likely to remain low
Average mortgage rates will remain low this week, but could fluctuate a bit day-to-day depending on headlines about the covid relief plan and concerns about the economy stalling amid lockdowns. We also have a Fed meeting that concludes on Wednesday that could play a role in rates and pricing this week. We aren't likely to see large changes to rates either up or down this week.
What's affecting rates this week:
- Economic stimulus: The Fed continues to buy Treasuries and mortgage bonds, helping to keep rates low and generally stable.
- Fed Meeting: The Fed will release a policy statement on Wednesday that could affect pricing for the day.
- Economic relief talks: A deal is expected to get done this week as part of a larger spending bill. Markets have already priced in a deal worth nearly $1 trillion, but we could see further reaction.
- Lender capacity: Lenders continue to struggle with volume constraints, making it unlikely they would push rates significantly lower this week, although small improvements are possible.
