BrendatheLenda-Branch Manager

! Groundhog Day, held on February 2nd, is when we ask, "Are we in for six more weeks of winter?" Only a groundhog named Punxsutawney Phil knows for sure... ( !)... Each year on Groundhog Day, people flock to Gobbler’s Knob in Punxsutawney, Pennsylvania, to await the forecast of the local rodent celebrity. Originating with German settlers, who came to Pennsylvania in the 1700s and brought their seasonal superstitions with them, legend has it that if Phil sees his shadow on February 2nd, the winter chill will continue. Oddly, if the weather is cloudy and he doesn’t see his shadow, we can expect warmer temperatures and early spring. Groundhog Day is a tradition to be cherished... as are these low mortgage rates! (see what I did there?) , : ...but not necessarily 6 more weeks of record low mortgage rates! , , , , . Or, just reach out and we can complain about the six more weeks of winter yet to come!

, : Average mortgage rates improved slightly midweek before losing ground to end the week basically unchanged. The improvements were small, mainly improving rebate pricing rather than actually improving rates. Rates remain near record lows.... : , Average mortgage rates will remain low, but may end the week at least slightly worse depending on how markets perform this week. We may also see some small day-to-day movements in rebate pricing, the credit a lender provides towards closing costs based on what rate you choose, or the cost to obtain a lower rate (often called 'points'). ' : - Economic data: Not much to worry about this week, but Friday's jobs data could cause some small movement for rates and pricing. - Fed bond purchases: The Fed continues to buy Treasuries and mortgage bonds, helping to keep rates low and generally stable. - Bond pricing: Lenders set mortgage rates based on the pricing of mortgage bonds, which face technical resistance in improving further. This points to the possibility of rates getting slightly worse, while unlikely to improve much from here.

' ? Demand for housing has increased as mortgage rates have continued to hover near record lows, and home buyers recognize a good deal - mortgage purchase applications are up 16% from last year. At the same time, inventory which was already an issue pre-pandemic is now tighter than ever, with multiple offers and bidding wars. Since there is more demand, and even less inventory of homes for sale, prices conti...nue to go up and are likely to do so until mortgage rates rise significantly. ! Any increases in price will be offset with the low mortgage rates, which helps you to get more house for your money. Waiting for home prices to drop would be a mistake that could end up costing you more money. ' , . ' .

, : 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.... : , 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. ' : - 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.