Mortgage rates moved higher this week, rising in recent days at the fastest pace in months.

The strong increase ended a 6-week stretch in which rates trended slowly and consistently downward, a trajectory that reflected the  pessimism brought upon by a surge in coronavirus cases and uncertain availability of fiscal relief. Stronger than expected inflation figures over the past couple days, along with some encouraging developments regarding a COVID-19 vaccine fueled the increase – although doubts about the federal government’s ability to agree on a new coronavirus relief bill appeared to hinder some of the upward motion. Rates are still historically low, but the recent increases were a wakeup call for many market participants.

Where rates go from here is difficult to predict, but if key economic data – such as Friday’s retail sales figures – continue to impress,  along with a deal  in Washington, then more upward movement in rates could be on the way.