Mortgage rates fell again this week, matching their lowest level since late February.

After a sustained selloff in 2021’s first quarter, demand for Treasurys has increased recently, keeping downward pressure on yields and thus mortgage rates. Continuing a recent trend, yields showed little regard for strong economic data reports released last week, trending downward despite strong readings on retail sales and consumer confidence. One reason for this atypical movement could be that investors had already priced in these strong reports. A stellar read on retail sales was expected following the receipt of stimulus payments by many households across the country. Some evidence also suggests that demand from overseas investors has increased lately, placing more downward pressure on yields. More generally, rising COVID-19 cases may have tempered some investor optimism for the near-term, limiting their tolerance for risk.

However, despite another weekly downtick, the longer-term trend for mortgage rates remains to the upside and barring a significant economic or pandemic-related setback, it’s unlikely that this downward movement in rates will continue for an extended period.