Mortgage Rates Rise In Response to Encouraging Economic and Pandemic News

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.

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