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Forecast for the week of January 25, 2021

Please enjoy this complimentary mortgage rate forecast provided to keep you informed of where interest rates may be headed, and to help you gain the advantage when securing low rates and payments.

Last Week's Mortgage Rate Recap

Rates slightly improved

Average mortgage rates were slightly better for the week, improving steadily day-by-day despite a holiday shortened week. Rates were helped by a reduced likelihood that President Biden's $1.9tn stimulus would be passed soon, as lawmakers disagree on the immediacy and need for such a large spending package.

This Week's Mortgage Rate Forecast

Rates will remain low but could worsen slightly

Average mortgage rates will remain low this week, but could go up depending on what happens at this week's Fed meeting, and with this week's economic data.

What's affecting rates this week:

• Fed bond purchases: The Fed continues to buy Treasuries and mortgage bonds, helping to keep rates low and generally stable.
• Fed meeting: The Fed releases a statement on Wednesday, and markets will be listening for clues of when the Fed will start to reduce bond purchases.
• Economic data: A full calendar of data this week, we could see some reports influence rates.
• Bond pricing: Lenders set mortgage rates based on the pricing of mortgage bonds, which recovered last week after losing ground early in January. However, bonds may face technical resistance in improving further, leading to rates getting slightly worse this week.

If you would like to discuss interest rates further or find out the benefits of locking your rate today, please contact your mortgage professional at or .

Interest Rate Forecast and Commentary provided by:

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