Calendar: What determines mortgage rates for the week of June 28 to July 2, 2021

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Mortgage rates are notoriously difficult to predict. They go up and down based on market sentiment, headlines, and various economic indicators. Here’s a look at what could move the markets this week.

The big economic news comes on Friday when the US Department of Labor releases its June jobs report. Unemployment soared to double digits in the first months of the coronavirus pandemic, but the US labor market rebounded strongly as the economy reopened.

The unemployment rate in May was 5.8%. Mortgage industry players will be watching closely for signs of an acceleration or slowdown in the labor market.

Calculating mortgage rates is complicated, but here’s a simple rule: The 30-year fixed-rate mortgage closely tracks the yield of the 10-year Treasury. When that rate rises, so does the popular 30-year fixed rate mortgage.

Fixed rate mortgage rates are influenced by other factors, such as supply and demand. When mortgage lenders have too much business, they raise rates to decrease demand. When business is light, they tend to cut rates to attract more customers.

Ultimately, the rates are set by the investors who buy your loan. Most US mortgages are packaged in the form of securities and resold to investors. Your lender offers you an interest rate that secondary market investors are willing to pay.

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