Rates Higher Today, Lower This Week. What's Next?
Posted To: Mortgage Rate Watch
Even though rates rebounded to slightly higher levels on Friday, the week generally brought pleasant surprises as the mortgage market returned to levels not seen since February. Back in February, we were passing through the present rate range on the way UP , and there were few–if any–reasons to think we’d return to those levels if underlying trends continued. Specifically , covid case counts have continued to fall and are roughly as low as they’ve been since the start of the pandemic. Economic data has been volatile, but generally stronger in 2021 than most economists expected. Inflation metrics have been running hot (inflation is bad for rates). And the Fed has increasingly talked about dialing back its rate-friendly bond-buying programs. But as is always the case, markets were trying to…(read more)