For the week of December 21, 2020

Recap of last week: Rates basically unchanged
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 this week will likely remain about the same, as underlying market conditions slow down ahead of the Christmas holiday. Also, lenders won't be looking to lower rates and take on an influx of new business this week, making it unlikely to see any significant improvement in rates. Rates are not at risk of moving much higher from current levels between now and the end of the year, making it a great time to talk with your local mortgage professional about buying a home or refinancing the home you currently own.

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.
- Holiday week: Mortgage rates are largely based on the pricing of mortgage bonds, and the bond market will be closed early on Thursday and remain closed on Friday.
- Lender capacity: Lenders continue to struggle with volume constraints, making it unlikely they would push rates significantly lower this week, although small movements are possible.