For the week of December 28, 2020

Recap of last week: Rates basically unchanged
Average mortgage rates last week remained low. Markets were closed early on Thursday and all day Friday for Christmas, as were most lenders.

Mortgage Rate Forecast: Rates likely to remain low
Average mortgage rates this week will likely remain about the same, as trading volumes remain light this week ahead of New Years. It is unlikely we will see much movement in rates this week, with little happening in the news or in the markets to cause lenders to have to raise or lower rates significantly. As the year winds to a close, it remains a great time to talk with your local mortgage professional about buying a home or refinancing to take advantage of current low rates.

What's affecting rates this week:
- 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, as will lenders.
- 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.
- Economic stimulus: The Fed continues to buy Treasuries and mortgage bonds, helping to keep rates low and generally stable.